Answer: $3,250
Explanation:
DATA FOR DEPARTMENT A for February 2015 are:
WIP, beginning inventory, 40% completed 200 units
Units started during February 800 units
WIP, ending inventory, 50% completed 100 units
COST FOR DEPARTMENT A for Feburary 2015 are:
WIP, beginning inventory:
Direct Materials $150,000
Conversion Costs 200,000
Direct Materials costs added during February 600,000
Conversion costs added during February 425,000
THE UNIT COST PER EQUIVALENT UNIT of beginning inventory in Department A is:
---------------------------------mat----conv--------total
No of physical unit-----200 - - 200
% completed - - - - - - -100% - -40%
Equivalent unit Beg.
Inventory - - - - - - - - - 200------ 80
Total cost of Beg.
Inventory - - - - - -150,000--- 200,000
Cost per equivalent
Unit - - - - - - - - - - - $750 - - - - $2500 - - $3,250
