Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2012 are:
Costs for Department A for February 2012 are:

-What is the unit cost per equivalent unit of beginning inventory in Department A?

A) $2,000
B) $3,500
C) $7,000
D) $7,500