Question

he following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 54,000 $ 148,500 Started in May 144,000 475,200 Units completed 153,000 Ending work in process 45,000 Required: Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.)

Answer 1

Answer:3.15-- cost per equivalent

Step-by-step explanation:

Units Material Costs

Beginning work in process 54,000 148,000

Started in May 144,000 475,200

Units completed 153,000

Ending work in process 45,000

Solution

Equivalent units of materials = Units completed 153,000 + 100% of 45,000 ending work = 198,000

Total Material Cost = 148,500 + 475,200 = 623,700

Cost per equivalent unit for materials = 623,700/198,000 = 3.15