BUS 294 Plastic Molding, Inc.’s costing system utilizes two cost categories
Plastic Molding, Inc.’s costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for March are:Work in process, beginning inventory, 40% converted400 unitsUnits started during March1,200 unitsWork in process, ending inventory200 unitsWork in process, beginning inventory:Direct materials$200,000Conversion costs$200,000Direct materials costs added during March$2,000,000Conversion costs added during March$2,500,000What is the unit cost for February in the Assembly Department?a.$1,750b.$1,000c.$3,500d.$3,900e.$3,750