Beginning work in process inventory: Units in beginning work in process inventor

Question

Beginning work in process inventory: Units in beginning work in process inventory................... 800 Materials costs................................................ $5,900 Conversion costs............................................... $2,7011 Percent complete with respect to materials................ 60% Percent complete with respect to conversion.................... 15% Units started into production during the month................. 9,900 Units transferred to the next department during the month 8,800 Materials costs added during the month....................... $106,500 Conversion costs added during the month........................ $181,800 Ending work in process inventory: Units in ending work in process inventory...................... 1,900 Percent complete with respect to materials..................... 80% Percent complete with respect to conversion.................... 55% Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for materials for the month in the first processing department is closest to: $10.50 $9.95 $10.89 $10.32

Explanation / Answer

total material cost = 5900+106500 = 112400 total units completed = 8800+0.8*1900 = 10320 cost per equivalent unit of material = 112400/10320 = 10.89

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