Final answer:
To find the cost per equivalent unit for materials, add the cost of beginning WIP to the cost of materials started in April to get a total cost of $24,000. Since all materials are added at the beginning, we then calculate the total equivalent units as 55,000, leading to a cost per equivalent unit of $0.4364.
Step-by-step explanation:
Calculating Cost per Equivalent Unit for Materials
To calculate the cost per equivalent unit for materials using the weighted-average method, we have two key steps:
- Determine the total cost of materials used.
- Calculate the equivalent units of materials.
Firstly, we add up the cost of materials for beginning work in progress (WIP) and the materials added during the month of April:
$5,500 (beginning WIP) + $18,500 (started in April) = $24,000
Secondly, since all materials are added at the beginning of the process, the equivalent units for materials will be equal to the units started in April plus the beginning WIP (the units in ending WIP are not considered since they include the materials added at the beginning):
15,000 (beginning WIP) + 40,000 (started in April) = 55,000 equivalent units
Finally, we divide the total cost by the equivalent units to get the cost per equivalent unit for materials:
$24,000 / 55,000 = $0.4364 per equivalent unit