Question

Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 84,000 units during the month and had 18,700 units in process at month-end, 50% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $248,000, and amounts that relate to the current month totaled $990,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:

Answer 1

the equivalent unit cost is $13.26

Step-by-step explanation:

The computation of the equivalent unit cost is shown below:

Calculation of Peach Equivalent-unit cost is

= Total Cost ÷ Units

= ($990,000 + $248,000) ÷ (84,000 units + (18,700 units × 50% completion)

= ($1,238,000) ÷ (93,350 units)

= $13.26 per unit

Hence, the equivalent unit cost is $13.26