Homework Answers
Answer is d. $31.78
Computation of equivalent units of production:
| Particulars | Materials cost | conversion cost | ||||
| Units | % of completion | equivalent units | units | % of completion | equivalent units | |
| Opening inventory | 600 | 0 | 0 | 600 | 55% | 330 |
| Units started and completed | 5300 | 100% | 5300 | 5300 | 100% | 5300 |
| Closing inventory | 400 | 100% | 400 | 400 | 31% | 124 |
| Total | 5700 | 5754 | ||||
Cost per unit = material cost per unit + conversio. Cost per unit
= ($28200/5700)+($154400/5754)
= $4.95 + $26.83
Cost per unit = $31.78.
Thanks,
Please let me know if you have any doubts.
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