Question

At the start of November, Speedway Refinery had Work in Process inventory consisting of 4,200 units that were 80 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $40,700 ($28,900 of material cost and $11,800 of labor and overhead). During November, the company started 44,400 units and incurred $405,620 of material cost and $387,700 of labor and overhead. The company completed 45,400 units during the month, and 3,200 units were in process at the end of November. The units in ending Work in Process were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs.

(a) Calculate the cost per equivalent unit for materials and conversion costs. (Round answers to 2 decimal places, e.g. 15.25.)

Cost per equivalent unit: Materials |_____________|

Cost per equivalent unit: Conversion costs |____________|

Answer 1

Since method to be used was not given, i have used Weighted Average Method.If you require another method, kindly comment.

	Physical units	Material	Conversion
Units to account for
Work in Process Beginning	4200
Started during the period	44400
Total units to account for	48600
Units Accounted for
Completed and transferred	45400	45400	45400
Work in Process Ending	3200	2880	1600
Total Units Accounted for	48600
Equivalent units		48280	47000
	Material	Conversion	Total
Cost of Beginning Work in Process	$          28,900	$          11,800	$             40,700
Cost added during the period	$        405,620	$        387,700	$           793,320
Total Cost to account for	$       434,520	$       399,500	$           834,020
Equivalent units of Production	48280	47000
Cost per equivalent unit	$              9.00	$              8.50	$               17.50

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