Compute the cost per equivalent unit for materials, for labour, for overhead, and in total.

Ainsley Industries uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

	Materials	Labour	Overhead
Work in process, May 1	$28,000	$22,000	$117,500
Cost added during May	$52,000	$18,500	$63,600
Equivalent units of production	1,500	800	1,200

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Expert Solution

Weighted-Average Method

Costs per Equivalent Unit:

	Total Cost	Materials	Labour	Overhead
Work in process, May 1	$167,500	$28,000	$22,000	$117,500
Cost added during May	$134,100	$52,000	$18,500	$63,600
Total cost (a)	$301,600	$80,000	$40,500	$181,100

Equivalent units of production (b)		1,500	800	1,200
Cost per equivalent unit (a) ÷ (b		$53	$51	$151

Total cost per equivalent Unit = $53.33 + $50.63 + $150.92 = $254.88

The total cost per equivalent unit is $254.88.

Renze Joy Candido answered 1 year ago

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