Answer:
2.59
Explanation:
Calculatation for the cost per equivalent unit of materials
First step is to find the Equivalent unit of material (FIFO)
Equivalent unit of material (FIFO) = [83,000*(100%-70%)+253,000+31,500*40%]
Equivalent unit of material (FIFO) = [83,000*30%+253,000+31,500*40%]
Equivalent unit of material (FIFO) = 24,900+253,000+12,600
Equivalent unit of material (FIFO) = 290,500
Second step is to calculate for the cost per equivalent unit of materials using this formula
Cost per equivalent unit of material = Direct Materials/Equivalent unit of material (FIFO)
Cost per equivalent unit of material = $754,680/290,500
Cost per equivalent unit of material =2.59
Therefore the cost per equivalent unit of materials is 2.59
