Answer:
The cost per equivalent unit for materials for the month in the first processing department is closest to C. $19.91
Explanation:
The Concept of Equivalent units expresses the number of units of outputs in terms of the completion status of the input resources in the process.
<em>Step 1 Calculate the Number of Units of Ending Work In Process</em>
Hint : Units in the Process must equal units out of the process
Units of Ending Work In Process = Units of Beginning Work In Process + Units Started during the Period - Units Completed and Transferred Out of the process
= 500+6700-6000
= 1,200
<em>Step 2 Calculate the total material cost for the processing department</em>
<em>total material cost :</em>
Opening Work In Process $ 5,800
<em>Add</em> Incurred During the Period $125,600
Total material cost $131,400
<em>Step 3 Calculate total Equivalent Units in respect of Material Cost</em>
Completed and Transferred Out ( 6,000 × 100%) 6,000
Ending Work In Process ( 1,200 × 50 %) 600
Total Equivalent Units 6,600
<em>Step 4 Calculate the cost per equivalent unit for materials</em>
cost per equivalent unit = total material cost/ total Equivalent Units
<em> = </em>$131,400 / 6,600
= $ 19.91
