Black Comp;any uses tghe weighted average method in its process costing system.

Question

Black Comp;any uses tghe weighted average method in its process costing system. The company's ending work in process inventory consists of 6,000 units, 75 percent complete with respect to materials and 50 percent complete with rspect to labor and overhead. If the total dollar value of the inventory is $80,000 and the cost per equivalent unit for labor and overheade is $6.00, what is the cost per equvalent unit for materials.

Please show me how you got your answer as I need to show my work.

Thank You

Explanation / Answer

There are 6,000 units, 50% complete for labor and overhead. 6,000 units*.50 = 3,000 EU for labor and overhead cost per EU for labor and overhead = $6.00 3,000 EU * $6.00 per EU = $18,000. Cost for materials = 80,000 - 18,000 = $62,000 6,000 units * .75 = 4,500 EU for materials $62,000/4,500 EU = $13.78 per EU for material (rounded up) Answer: $13.78

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