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% 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, first find the equivalent units of production. Completed units are fully equivalent, so 8,000 units are 100% complete. The 12,000 units in process are 40% complete, so they count as 12,000 * 0.4 = 4,800 equivalent units. The total equivalent units are 8,000 + 4,800 = 12,800. Divide the total costs by the equivalent units: $31,800 / 12,800 units = $2.48 per equivalent unit.