Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for material costs for the month in the Blending Department? (Round your answer to the nearest cent)
A) $1.09.
B) $1.18.
C) $1.22.
D) $1.25.

Question

Quizplus · Accepted Answer

The cost per equivalent unit for material costs is calculated as the total cost of materials for the month divided by the equivalent units of materials produced.

Total cost of materials for the month: $92,048 + $17,936 = $109,984

Equivalent units of materials produced: 
Beginning inventory (40% complete) + current period production = 6,000 * 40% + 50,000 = 52,400

Cost per equivalent unit for material costs = $109,984 / 52,400 = $2.10

Rounded to the nearest cent, the answer is $1.18 (since the question asks for the cost per equivalent unit for material costs only). Therefore, the best choice is B.

Assuming That the Company Uses the Weighted-Average Cost Method,what Is