Zuniga Ltd uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: Using the weighted average method, the cost per equivalent unit for materials was
A) $5.00
B) $4.14
C) $6.04
D) $4.44

Question

Quizplus · Accepted Answer

The cost per equivalent unit for materials is calculated by dividing the total cost of materials used by the total number of equivalent units produced. In this case, the total cost of materials used is $38,040 and the total number of equivalent units produced is 1,200. Therefore, the cost per equivalent unit for materials is $38,040 / 1,200 = $5.00.

Zuniga Ltd Uses a Process Costing System