Question

Indigo Fans mass-produces small electric fans in Taiwan for home use. All direct materials are added at the beginning of production, and conversion costs are incurred evenly throughout production. The following production information is for the month of October (currency is New Taiwan dollars): Started in October Completed in October Ending WIP (80% complete) Beginning WIP (10% complete) Physical Units 80,000 74,000 14,400 8,400 Costs NT$ 17,800 37,200 Beginning work in process costs Direct materials Conversion costs Costs added this period Direct materials Conversion costs 96,000 215,000 Calculate the equivalent cost per unit using the weighted average method. (Round all entries to 2 decimal places, e.g. 15.25.) Direct materials per equivalent unit $ Conversion costs per equivalent unit | Total cost per equivalent unit

Answer 1

	Direct Materials	Conversion costs
Completed in October	74000	74000
Ending work in process	14400	11520	=14400*80%
Equivalent units of Production	88400	85520
	Direct Materials	Conversion costs
Beginning Work in process costs	17800	37200
Costs added this period	96000	215000
Total costs	113800	252200
Divide by Equivalent units of Production	88400	85520
Unit costs	1.29	2.95
Direct materials per equivalent unit	1.29
Conversion costs per equivalent unit	2.95
Total cost per equivalent unit	4.24