The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:
April 1, work in process:
Materials cost, 3,000 units $7,500
Conversion costs, 3,000 units,
80% completed 6,000
Materials added during April, 10,000 units 29,000
Conversion costs during April 35,000
Goods finished during April, 11,500 units ---
April 30 work in process, 1,500 units,
60% completed ---All direct materials are placed in process at the beginning of the process and theaverage cost methodis used to cost inventories.The materials cost per equivalent unit (to the nearest cent) for April is:
a. $2.60
b. $3.02
c. $2.26
d. $2.81

Respuesta :

Answer:

d. $2.81

Explanation:

Beginning WIP                                 3,000 units

Add: Material added during April  10,000 units

Total Material                                   13,000 units

Less: Ending WIP                             1,500 units

Goods Finished during April         11,500 units

Goods finished during April           11,500 units

Add: Ending WIP                             1,500 units

(1,500 x 100%)

Equivalent units                              13,000 units

Material Cost

Beginning WIP                               $7,500

Add: Cost added during April       $29,000

Total material costs A                  $36,500

Total equivalent units B                13,000 units

Direct Material cost   (A/B)          $2.81          

per Equivalent Unit