Assume that for the month of September, a department has 26,000 equivalent units of materials and...

Assume that for the month of September, a department has 26,000 equivalent units of materials and 81,000 equivalent units of conversion cost. For beginning work-in-process, the cost of materials is $24,000 and the conversion cost is $95,000. Costs added during September are $23,000 for materials and $154,000 for conversion. What is cost per unit for September? (Note: Round answer to three decimal places.)

a.$3.507 per unit b.$3.882 per unit c.$5.507 per unit d.$4.882 per unit

I know the answer is D. But could you please show which numbers to use? Any extra explanation is helpful. Thank you!

Solutions

Expert Solution

Correct answer-----------d.$4.882 per unit

Working

Cost per Equivalent Units (Weighted average)
COST	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost (A)	$ 24,000	$ 95,000	$ 119,000
Cost incurred during period (B)	$ 23,000	$ 154,000	$ 177,000
Total Cost to be accounted for (C=A+B)	$ 47,000	$ 249,000	$ 296,000
Total Equivalent Units (D)	26,000	81,000
Cost per Equivalent Units (E=C/D)	$ 1.808	$ 3.074	$ 4.882

ekkarill92 answered 10 months ago

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