Answer:
The direct labor cost per equivalent unit (rounded to the nearest cent) is $ 0.25
Explanation:
The Concept of Equivalent Units measures unit output in terms of percentage completion of inputs added into the process.
<em>Calculation of Total Labor cost for the Assembly Department</em>
Beginning inventory costs were $9,000
Incurred during the period $24,000
Total Labor Costs $33,000
<em>Calculation of Total Equivalent units in respect of Labor Cost in Assembly Department</em>
The ending inventory consists of 20,000×25% = 5,000
Completed and transferred out 127,500×100% = 127,500
Total Equivalent units 132,500
<em>Calculation of cost per equivalent unit of Labor Cost in Assembly Department</em>
<em>cost per equivalent unit = Total Labor cost / Total Equivalent units</em>
<em> = </em> $33,000/ 132,500
= $0.249056603
=$0.25
<em></em>