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Question 17 (6 points) **The debits to Work in Process --Assembly Department for April, together with data concerning productGoods finished during April, 16,000 units Work in process, April 30, 1,000 units, 40% completed All direct materials are plac

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Answer #1

Answer: Option (b) $2.25 per unit

Equivalent units of Material :
Beginning WIP = 5000 units
Units Added = 12000
Units completed = 16000
Units added and completed = 16000 - 5000 = 11000
Ending Units = 1000

Equivalent units of Material = Units added and completed + Ending WIP units * Precentage completion
= 11000 units + 1000 units * 100%
= 12000 units

Material costs incurred during the year = $27000

Material cost per equivalent units = Material cost / Equivalent units of Material
= $27000 / 12000
= $2.25 per unit

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