The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company:
The beginning units still in process are 100% complete with respect to direct materials and 75% complete with respect to conversion costs and had $4,800 of materials costs and $4,275 of conversion costs. The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs.
-Assuming the FIFO method was used, what was the cost per equivalent unit of production for direct materials?

Question

The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company:
 The beginning units still in process are 100% complete with respect to direct materials and 75% complete with respect to conversion costs and had $4,800 of materials costs and $4,275 of conversion costs. The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs. 
-Assuming the FIFO method was used, what was the cost per equivalent unit of production for direct materials?

Quizplus · Accepted Answer

The cost per equivalent unit of production for direct materials using the FIFO method is $2.80. This is calculated by dividing the total cost of direct materials used ($11,200) by the total equivalent units of production (4,000).

The Nesting Company Manufactures Birdhouses in a Single Manufacturing Process