Answer:
e. $2.16
Explanation:
<u><em>Richards Corporation </em></u>
<u><em>Weighted-Average Method </em></u>
<u><em>Fabricating Department:</em></u>
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Completed &
transferred out: 360,000 100 100 360,000 360,000
<u>Ending Inv: 35,000 40% 15% 14000 5250 </u>
<u>Equivalent Units 374,000 365250</u>
Costs Direct Materials Conversion
Beg. Work in Process - : $47,200 $89,700
<u>Costs incurred in October - $759,920 $929,300</u>
Total Costs 807,120 1,019,000
Cost Per Equivalent Unit = Total Costs/ Equivalent Units
Cost Per Equivalent Unit Materials = 807120/ 374,000= $ 2.158 ≅$ 2.16
We divide the total costs of Materials with the total Equvilant units of Materials to get Cost Per Equivalent Unit of Materials which is 2.16
