The debits to work in process assembly department for April, together with data

Question

The debits to work in process assembly department for April, together with data concerning production are as follows:

April 1, work in process

Material cost 3,000 units    $8,857

Conversion cost 3,000 units $5,008

Materials added during April, 10,000 units $25,855

Conversion cost during April         $30,311

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?

A. $2.59

B.$3.03

C.$2.25

D. $2.67

Please expalin how you got the answer

Explanation / Answer

% to complete of beg WIP = 3,000
Started & completed in Apr = 11,500 - 3,000 = 8,500
Ending WIP % of completion = 0
Total EU = 11,500

cost per EU = 25,855/ 11,500 = 2.25

So anwer is (C)

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