Excalibur Ltd

Multiple Choice

Excalibur Ltd.began operations on October 1 of the current year.Its production requires that direct materials are added at the beginning of the process and conversion costs are incurred uniformly.Direct materials costs for October were $380,000 and conversion costs were $1,750,000.There were 80,000 units started during the month.The ending inventory was 25,000 units which were 60% complete.The cost per equivalent unit for conversion was

A) $25.00.
B) $21.88.
C) $70.00.
D) $116.67.
E) $16.67.