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Zimmerman Company manufactures plastic cups in one department. The following information is available: Work-In-Process Inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-In-Process Inventory, end 12,000 Direct materials added $180,000 Direct labor $165,600 Factory overhead $82,800 The units in the ending Work-In-Process Inventory are 50 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The unit cost of direct materials is

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Kolawole845

Answer:

 Material cost per unit  =$3.33

Explanation:

Item                          units                                   Equivalent unit

Transferred out      48,000       48,000× 100        48,000                        

Closing WIP               12,000       12,000× 50%        6,000

Total equivalent unit                                                54,000

unit Cost of direct material = direct material cost/equivalent units

                                     = 180,000/54000

                                      =$3.33

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