The debits to Work in Process - Assembly Department for April, together with dat

Question

The debits to Work in Process - Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $8,033 Conversion costs, 3,000 units, 2/3 completed $5,848 Materials added during April, 10,000 units $25,295 Conversion costs during April $32,861 Goods finished during April, 11,500 units - - - April 30 work in process, 1,500 units, 1/2 completed - - - All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. What is the materials cost per equivalent unit for April? Select the correct answer. a. $3.29 b. $2.20 c. $2.56 d. $2.53

Explanation / Answer

This is a bit tricky but I'm using this statement to calculate the cost per EU = "All direct materials are placed in process at the beginning of the process". This way I include the beg WIP cost of material. The EU calculation for the DM are: - % to complete of beg WIP = 3,000 - Started & completed in Apr = 12,000 - 3,000 = 9,000 - Ending WIP % of completion = 0 Total EU = 12,000 cost per EU = 25,000/ 12,000 = 2.08

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