Question

During April, the production department of a process operations system completed and transferred to finished goods 28,000 units that were in process at the beginning of April and 88,000 units that were started and completed in April. Aprils beginning inventory units were 100% complete with respect to materials and 45% complete with respect to labor. At the end of April, 31,000 additional units were in process in the production department and were 100% complete with respect to materials and 50% complete with respect to labor. The beginning inventory included materials cost of $108,200 and the production department incurred direct materials cost of $332,600 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. Multiple Choice $3.80 $3.78. $2.26 $3.00 $5.01

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Answer #1

units completed (28000+88000) 116000

Ending work in process(100% direct material) 31000

Total units 147000

Total direct material cost ($108200+$332600) $440800

Cost per equivalent unit $440800/147000

=$2.99 per equivalent unit

= $3.00

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