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Ambeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry

Accounting

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Ambeth Manufacturing uses a process cost system to manufacture

Dust Density Sensors for the mining industry. The following information

pertains to operations for the month of May 1998.

Units

Beginning work-in-process inventory, May 1

16,000

Started in production during May

100,000

Completed production during May

92,000

Ending work-in-process inventory, May 31

24,000

The beginning inventory was 60% complete for materials and

20% complete for conversion costs.

Costs pertaining to the month of May are as follows:

?

Beginning inventory costs are materials, P54,560; direct

labor, P20,320; and factory overhead, P15,240.

?

Costs incurred during May are materials used, P468,000;

direct labor, P182,880; and factory overhead, P391,160

Using the weighted-average method, the equivalent unit cost of

materials for May is

a.

P4.12

b.

P4.50

c.

P4.60

d.

P5.68