Question

At Trapeze Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include WIP beginning (50% for conversion) Units started Units completed and transferred out WIP ending (60% for conversion) Beginning WIP direct materials Beginning WIP conversion costs Costs of materials added Costs of conversion added 20,200 units 130,500 units 107,700 units 43,000 units $30,000 $22,500 $393,100 $271,125 What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.) O A. $3.31 B. $2.61 O C. $3.17 O D. $2.81

Answer 1

Correct answer----(D) $2.81

Workig

Statement of Equivalent Units
		Material
	Units	Complete %	Equivalent units
Transferred	1,07,700	100%	1,07,700
Closing WIP	43,000	100%	43,000
Total	1,50,700	Total	1,50,700

Cost per Equivalent Units
COST	Material
Beginning WIP Inventory Cost	$             30,000
Cost incurred during period	$         3,93,100
Total Cost to be accounted for	$         4,23,100
Total Equivalent Units	1,50,700
Cost per Equivalent Units	$                 2.81