Answer:
$3.00
Step-by-step explanation:
Calculation for the Cost per equivalent unit for Material Q under the weighted-average method
First step is to calculate the Units transferred
Units transferred= 28000 + 72000 - 16000
Units transferred= 84,000
Second step is to calculate Equivalent units of material P
Equivalent units of material P= 84,000 + 16000
Equivalent units of material P= 100,000 Units
Now let calculate the Cost per Equivalent Units
Cost per Equivalent units of Material P
Beginning WIP Inventory Cost $120,000
Add Cost incurred during period $ 180,000
Total Cost to be accounted for $ 300,000
($300,000+$120,000)
÷Total Equivalent Units 100,000
=Cost per Equivalent Units $3.00
($300,000÷$100,000)
Therefore the Cost per equivalent unit for Material Q under the weighted-average method will be $3.00