Question

The following information pertains to Lap Co.'s Palo Division for the month of April: Number of Units Cost of Materials Beginning WIP 15,000 $5,500 Started in April 40,000 $18,500 Unites Completed 42,500 Ending WIP 12,500 All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is

Answer 1

Answer:

$0.44

Explanation:

Given that,

Beginning work in process = $5,500

Started in April = $18,500

Units completed = 42,500

Ending Work-in-Process = 12,500

Using the weighted-average method,

the cost per equivalent unit for materials is as follows:

= (Beginning work in process + Started in April) ÷ (Units completed + Ending Work-in-Process)

= ($5,500 + $18,500) ÷ (42,500 + 12,500)

= $0.44