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The following information pertains to the Moline Facility for the month of May (

ID: 2567354 • Letter: T

Question

The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):

value: 7.50 points The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs 90,000 32,000 Beginning work in process Started in May Units completed Ending work in process 250,000 250,000 112,600 90,000 Required: Compute the cost per equivalent unit for materials using the weighted-average method. (Round "Cost per equivalent unit" answer to 2 decimal places.) Total costs to be accounted for Cost per equivalent unit

Explanation / Answer

Total material cost:

Material cost in beginning WIP      $ 32,000

Add: material cost in current month $ 112,600

Total Material cost to be accounted for $ 144,600

Total Equivalent units of Material:

Finished Goods(100% complete in every respect)    250,000 Eq. units

Ending WIP (100% complete as regards to material) 90,000 Eq.units

(as material in added in beginning)

Total Equivalent unts of material                              340,000 Eq. units

Cost per Equivalent units = Total Material cost / Equivalent unit = 144,600 /340,000 = $ 0.425 per eq. unit