Answer:
The Plastic Flowerpots Company
A) Equivalent units of production:
Started and completed = 17,600
Ending WIP = 2,400
Total equivalent units = 20,000
B) Cost per equivalent unit of production:
Cost per equivalent unit = $27,900/20,000
= $1.40
Explanation:
a) Data:
Molding department:
Units started = 18,000
Ending WIP = 3,000
Degree of completion = 80% for WIP
Cost:
Beginning WIP: Direct materials $1,200
Direct materials during the month = $27,900
a) Equivalent units of production for materials:
Beginning WIP = 2,000
Started 18,000
Ending WIP (2,400) (80% of 3,000)
Completed 17,600
Started and completed = 17,600
Ending WIP = 2,400
Total equivalent units = 20,000
b) Cost per equivalent unit of production for materials:
Cost of materials $27,900
Equivalent units = 20,000
Cost per equivalent unit = $27,900/20,000
= $1.395
= $1.40
