Question

During December, the production department of a process operations system completed and transferred to finished goods a total of 59,000 units of product. At the end of December, 11,000 additional units were in process in the production department and were 50% complete with respect to materials. The beginning inventory included materials cost of $58,000 and the production department incurred direct materials cost of $184,500 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Answer 1

		Material
Final Answer:	Cost per equivalnet unit	3.76
	Working Note :
		Actual Units	Equivalent Units
			Material
	Units Completed and Transferred	59000	59000
	Units in ending inventory	11000	5500
	Total accounted for	70000	64500
	Cost Reconciliation Report
	Costs to be acounted for:
		Material
	Costs in beginning inventory	58,000
	Cost added dueing the year	184,500
	Total cost to account for	242,500
	Equivalent Units from above	64500
	Cost per equivalnet unit	3.76