Total direct materials cost incurred during the current period was $180,000 and the number of units completed during the current period plus equivalent units in ending work in process inventory was 36,000; therefore, the direct materials cost per equivalent unit for the current period was $5.00.

Question

Quizplus · Accepted Answer

The direct materials cost per equivalent unit is calculated by dividing the total direct materials cost incurred during the period ($180,000) by the number of units completed during the period plus equivalent units in ending work in process inventory (36,000 units), which equals $5.00 per equivalent unit.

Total Direct Materials Cost Incurred During the Current Period Was