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The equivalent units of activity for November were as follows: 8,200 equivalent units of direct material and 2,300 equivalent units of conversion activity. Required: Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use weighted-average process costing.

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Answer:

Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use the weighted-average process costing.

Assume that

Work In Process, Nov 1:

Direct Material.................$65,000

Conversion......................$180,000

Costs incurred during Nov:

Direct Material................$425,000

Conversion.....................$690,000

For Direct material

Direct material = (425000 + 65000) / 8200

Direct material = $60 per unit

For Conversion

Conversion = (690000 + 180000) / 2300

Conversion = $378 per unit

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