[11] Roy Company manufactures Product X in a two-stage production cycle in

Departments A and B. Materials are added at the beginning of the process in Department

B. Roy uses the weighted-average method. BWIP (6,000 units) for Department B was

50% complete as to conversion costs. EWIP (8,000 units) was 75% complete. During

February, 12,000 units were completed and transferred out of Department B. An analysis

of the costs relating to WIP and production activity in Department B for February follows:

Transferred- Materials Conversion

In Costs Costs

Costs

WIP, February 1:

Costs attached

$12,000

$1,000

29,000

5,500

5,000

The total cost per equivalent unit transferred out for February of Product X, rounded to the

nearest penny, was

Feb. activity:

Costs added

$2,500

A. $2.75

B. $2.78

C. $2.82

D. $3.01