Question

Transland Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 3,200 and ending work in process equaled 1,700 units. Transland had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $42,880?

Answer 1

Materials cost per unit is $13.40

Step-by-step explanation:

Equivalent Unit of Material = (3,200-1,700)*100% + 1,700*100%

Equivalent Unit of Material = 3,200

Materials cost per unit = total materials costs/Equivalent Unit of Material

Materials cost per unit = 42,880/3,200

Materials cost per unit = $ 13.40