Figure 6-5. For the current period,Haley Co.started 20,000 units and completed 8,000 units,leaving 12,000 units in process 40 percent complete.
Refer to Figure 6-5.If Haley Co.incurred $31,800 in production costs what was Haley's cost per equivalent unit for the period?

Question

Quizplus · Accepted Answer

To calculate the cost per equivalent unit, we need to determine the equivalent units of production. Haley Co. completed 8,000 units and had 12,000 units that were 40% complete. The equivalent units for the 12,000 units in process are 12,000 * 0.40 = 4,800. Therefore, the total equivalent units are 8,000 + 4,800 = 12,800. The cost per equivalent unit is $31,800 / 12,800 = $2.48.