In: Accounting
The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):
Units | Material Costs | |||
Beginning work in process | 90,000 | $ | 38,000 | |
Started in May | 270,000 | 104,000 | ||
Units completed | 250,000 | |||
Ending work in process | 110,000 | |||
Required:
Compute the cost per equivalent unit for materials using the weighted-average method. (Round "Cost per equivalent unit" answer to 2 decimal places.)
Answer is $ 0.39 per EUP | |||||
UNITS TO ACCOUNT FOR: | |||||
Beginning Work in Process units | 90,000 | ||||
Add: Units Started in Process | 2,70,000 | ||||
Total Units to account for: | 3,60,000 | ||||
UNITS TO BE ACCOUNTED FOR: | |||||
Units completed | 250000 | ||||
Ending Work in Process | 1,10,000 | ||||
Total Units to be accounted for: | 3,60,000 | ||||
Equivalent Units: | |||||
UNITS | Material Cost | ||||
% Completion | Units | ||||
Units completed | 2,50,000 | 100% | 2,50,000 | ||
Ending Work in Process | 1,10,000 | 100% | 1,10,000 | ||
Total Equivalent units | 3,60,000 | 3,60,000 | |||
TOTAL COST TO ACCOUNT FOR: | |||||
Material | |||||
Beginning cost of WIP | 38,000 | ||||
Cost added | 1,04,000 | ||||
Total Cost to account for: | 1,42,000 | ||||
Equivalent Units | 3,60,000 | ||||
Cost per Equivalent unit | 0.39 |