Question

Department Alpha had no beginning inventory. The department added direct materials costing $55,040 and conversion costs of $88,660 during the month of July. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the month, 40,000 units were completed. At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs. What is the correct cost per equivalent unit for materials for July?

Answer 1

Answer:

Cost per equivalent unit of materials = $1.28

Explanation:

Materials Cost = $55,040

Number of completed units = 40,000

Total units for material = 40,000 + 3,000 = 43,000 units  

Cost per equivalent unit of materials = $55,040 / 43,000

Cost per equivalent unit of materials = $1.28