Plemmon Company adds materials at the beginning of the process in the forming department, which is the first two stages of its production cycle. Information concerning the materials used in the forming department as April follows:
Units Materials Cost
Work in process at April 1 15,000 $8,000
Units started during April 60,000 $38,500
Units completed and transferred to next dept. 65,000
during April.
Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to the nearest dollar)?
a. $7,154
b. $6,200
c. $7,750
d. $6,417