Calculating Cost per Equivalent Unit (Weighted Average)
Incontro Company manufactures file cabinets. The following cost information is available for the month of December.
Beginning work in process |
|
Direct materials | $ 34,000 |
Conversion cost | 62,000 |
December costs |
|
Direct materials | 68,000 |
Conversion cost | 105,000 |
Incontro had 8,500 equivalent units of direct materials and 6,000 equivalent units of conversion activity during the month. Using the weighted average method, calculate Incontro’s cost per equivalent unit for materials and conversion during December.
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