Question

At Trapeze​ Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details​ include:WIP beginning​ (50% for​ conversion)​26,200 unitsUnits started​127,500 unitsUnits completed and transferred out​110,700 unitsWIP ending​ (60% for​ conversion)​43,000 unitsBeginning WIP direct materials​$34,000Beginning WIP conversion costs​$22,500Costs of materials added​$390,100Costs of conversion added​$271,125What is the cost per equivalent unit for direct​ materials?

Answer 1

the cost per equivalent unit for direct​ materials is $2.76

Step-by-step explanation:

First Determine the Total Equivalent Units for Direct Materials.

Note : direct materials are added at the beginning of the process

Units completed and transferred out​ ( ​110,700×100%) = 110,700

Ending Work - In - Process ( ​43,000×100%) = 43,000

Total = 153,700

Next determine the Total Cost of Direct Materials Incurred during the period.

Opening Work - In - Process = $34,000

Added During the year = $390,100

Total = $424,100

Then determine the cost per equivalent unit for direct​ materials

Cost per equivalent unit = Total Cost of Direct Materials/Total Equivalent Units for Direct Materials

= $424,100 / 153,700

= $2.76