Weed Wackers uses process costing and has provided data for its Processing Department for June as follows: $\begin{array}{lrr}&\text { Units }& \text { Cost of Materials }\
\text { Beginning Work in Process inventory } & 2,000 & \$ 21,020 \
\text { Units started in June } & 77,000 & 48,500 \
\text { Units completed } & 75,600 & \
\text { Ending Work in Process inventory } & 3,400 &
\end{array}$ All materials are added at the beginning of the manufacturing process. How much is the cost per equivalent unit for materials?

Question

Quizplus · Accepted Answer

The cost per equivalent unit for materials is $0.88. This is calculated by dividing the total cost of materials used in the period by the total equivalent units of production. In this case, the total cost of materials used is $48,500 + $21,020 = $69,520. The total equivalent units of production is 75,600 + (3,400 x 1/2) = 76,700. Therefore, the cost per equivalent unit for materials is $69,520 / 76,700 = $0.88.

Weed Wackers Uses Process Costing and Has Provided Data for Its