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Equivalent units

I have a multiple choice problem that I need help with...

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of May, there was no beginning work in process; 20,000 units were completed and transferred out; and there were 5,000 units in the ending work in process that were 40% complete. During May, $50,000 materials costs and $66,000 conversion costs were charged to the department. How much are unit production costs for materials and conversion costs for May if the weighted average method is used?
Materials Conversion Costs
A) $3.20 $2.80
B) $6.00 $3.00
C) $3.00 $2.00
D) $2.00 $3.00

Solution Preview

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of May, there was no beginning work in process; 20,000 units were completed and transferred out; ...

Solution Summary

The solution explains how to calculate the equivalent units for material and conversion. Department materials at the beginning of the process is determined.

$2.19