Question

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 24,000 units were started. At the end of the month all started units were 50% complete with respect to conversion. Direct Materials placed into production had a total cost of $420,000 and the total conversion cost for the month was $438,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.)

Answer 1

	Material	Conversion	Total
Cost per equivalent unit	17.50	18.25
Annapolis Company
Production Cost Report
Working Note 1:
	Actual Units
Calculation of Physical UNITS:
Units in beginning inventory	-
Units started during the period	24,000
Units to be accounted for	24,000
	Actual Units	Equivalent Units
		Material	Conversion
Units Completed and Transferred	23999	23999	23999
Units in ending inventory	1	1	0.5
Total accounted for	24000	24000	23999.5
Working Note 2:
Costs to be accounted for:
	Total	Material	Conversion
Costs in beginning inventory	-	-	-
Cost added during the year	858,000	420,000	438,000
Total cost to account for	858,000	420,000	438,000
Equivalent Units from above		24000	23999.5
Cost per equivalent unit		17.50	18.25