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 $7,100 Conversion costs, 3,000 units, 50% completed 5,900 Materials added during May, 10,000 units 26,200 Conversion costs during May 33,500 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 a. $2.62 b. $2.28 c. $3.35 d. $4.06

Answer 1

Cost of material =		26200
equivalent unit for material
WIP beginning		3000
Started and completed		8500
=11500-3000
Closing WIP =		0
Total		11500
Therefore equivalent unit cost = 26200/11500		2.28
Correct answer = option b.		2.28