Answer:
$4.00
Explanation:
Data provided:
Direct material costs in beginning Work-in-Process Inventory = $500
worth of materials is added during the month = $1,500
Equivalent units for direct materials = 500 units
Now,
the total cost incurred
= Direct material costs in beginning Work-in-Process Inventory + worth of materials is added during the month
= $500 + $1,500
= $2,000
Now,
The Cost per equivalent unit for direct materials
=
The Cost per equivalent unit for direct materials =
or
The Cost per equivalent unit for direct materials = $4.00
True statement
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Overpricing is a real issue
Explanation:
Line m is parallel to line n.
m-
n
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5.3