Question

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of production—direct materials		114,000	EUP
Equivalent units of production—conversion		98,500	EUP
Costs in beginning Work in Process—direct materials	$	66,900
Costs in beginning Work in Process—conversion	$	49,100
Costs incurred in February—direct materials	$	564,800
Costs incurred in February—conversion		709,400

The cost per equivalent unit of production for direct materials is:

Answer 1

Cost per equivalent unit of production for direct materials

= (Costs in beginning Work in Process—direct materials + Costs incurred in February—direct materials) / Equivalent units of production—direct materials

= (66,900 + 564,800) / 114,000

= 5.54