5. Lester Enterprises uses process costing to control costs in manufacturing equipment for the petroleum
industry. The following information pertains to operations for December.
Work in process, December 1st
Started in production during December
Work in process, November 30th
Units
37,000
244,000
49,000
The beginning inventory was 70% complete as to materials and 30% complete as to conversion costs. The
ending inventory was 80% complete as to materials and 50% complete as to conversion costs. Costs
pertaining to December are as follows:
•Beginning inventory: direct materials $95,800; direct labor 72,340; manufacturing overhead $23,800.
•Costs incurred during the month: direct materials $704,800; direct labor $254,650; manufacturing
overhead $488,600.
What's the equivalent unit for materials assuming Lester uses weighted-average process costing?
A. $2.95
B. $2.88
C. $3.03
D. $3.16