Question

The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows:

May 1, work in process:
Materials cost, 3,000 units	$7,000
Conversion costs, 3,000 units, 50% completed	5,300
Materials added during May, 10,000 units	27,600
Conversion costs during May	33,200
Goods finished during May, 11,500 units	0
May 31 work in process, 1,500 units, 50% completed	0

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. The materials cost per equivalent unit for May is

$2.76

$3.32

$4.02

$2.40

Answer 1

The materials cost per equivalent unit for May is $2.76
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat
Opening WIP	3,000.00	0%	-
Units started and completed = 11,500 -3,000	8,500.00	100%	8,500.00
ending WIP = 10,000 - 8,500	1,500.00	100%	1,500.00
Equivalent Units			10,000.00
Current Month Costs			27,600.00
Cost per Equivalent units			2.76