Question

The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):

	Units	Material Costs
Beginning work in process	90,000	$	29,000
Started in May	250,000		106,800
Units completed	265,000
Ending work in process	75,000

Required:

Compute the cost per equivalent unit for materials using the weighted-average method. (Round "Cost per equivalent unit" answer to 2 decimal places.)

Answer 1

	Material
Cost per equivalent Unit	$                    0.40

Working

Statement of Equivalent Units
				Material
	Units			Complete %	Equivalent units
Transferred	2,65,000			100%	2,65,000.0
Closing WIP	75,000			100%	75,000.0
Total	3,40,000			Total	3,40,000.0

COST		Material
Beginning WIP Inventory Cost		$         29,000
Cost incurred during period		$      1,06,800
Total Cost to be accounted for		$      1,35,800
Total Equivalent Units		3,40,000
Cost per Equivalent Units		$              0.40