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:

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.

The materials cost per equivalent unit (to the nearest cent) for April is

April 1, work in process:    Materials cost, 3,000 units $7,700    Conversion costs, 3,000 units, 80% completed 6,000 Materials added during April, 10,000 units 27,100 Conversion costs during April 33,200 Goods finished during April, 11,500 units 0 April 30 work in process, 1,500 units, 60% completed 0

Explanation / Answer

Equivalent unit of material = 11500+(1500*100%) = 13000 equivalent unit

Total cost of material = 7700+27100 = 34800

Cost per equivalent unit of material = 34800/13000 = 2.68

so answer is d) $2.68

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