During April, the production department of a process operations system completed

Question

During April, the production department of a process operations system completed and transferred to finished goods 29,000 units that were in process at the beginning of April and 85,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 70% complete with respect to labor. At the end of April, 32,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The beginning invento inc uded materials cost $108,700 and the production department incurred direct materials cost of $334,100 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. 2 points Multiple Choice $3.88. $3.93. $2.29 $3.03 $5.21.

Explanation / Answer

Equivalent unit of material = 114000+(32000*100%) = 146000 unit

Material cost = (108700+334100) = 442800

Cost per equivalent unit of material = 442800/146000 = $3.03

so answer is d) $3.03

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