Homework Answers
| (a) | Equivalent units: | ||||||
| Units | % of completion | Equivalent units | |||||
| a | b | a*b | |||||
| Units started and completed | (Note:1) | 18800 | 100% | 18800 | |||
| Units in ending inventory | 3600 | 80% | 2880 | ||||
| Total | 21680 | ||||||
| Note:1 | |||||||
| Units started and completed=Units in the beginning inventory+Units started-Units in ending inventory=2400+20000-3600=18800 units | |||||||
| (b) | Cost per equivalent unit: | ||||||
| $ | |||||||
| Beginning work in process inventory | 1600 | ||||||
| Direct materials added during the month | 31900 | ||||||
| Total material cost | a | 33500 | |||||
| Equivalent units | b | 21680 | |||||
| Cost per equivalent unit | a/b | 1.55 | |||||
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