Question

Company "A" has no beginning work in process; 9,000 units are transferred out and 3,000 units in ending work in process are 1/3 finished as to conversion cost and fully complete as to materials cost. If total materials cost is $60,000, the unite materials cost is

A. $5.00
B. 5.45 rounded
C. $6.00
D. No correct answer is given

Answer 1

The unit materials cost is $6.00.

Step-by-step explanation:

The unit materials cost can be calculated by dividing the total materials cost by the number of units transferred out. In this case, the total materials cost is $60,000 and the number of units transferred out is 9,000. So, the unit materials cost is $60,000 / 9,000 = $6.00.