Answer:
Material Cost per equivalent unit = $2.325
Conversion Cost per equivalent unit = $4.004
Explanation:
According to the scenario, computation of the given data are as follow:-
Particular Material cost Conversion cost
Completed and transferred out units 150,000 150,000
Work in process at the end of the month 10,000 2,500
Equivalent units per material 160,000 152,500
Cost incurred in the current month consisted $372,000 $610,750
Cost per equivalent unit $2.325 $4.004
Work in Process at the end of the Month Material Cost = Units × Percent
= 25,000 × 40÷100 = 10,000
Work in process at the end of the month conversion cost =25,000 × 10÷100
= 2,500
Material Cost incurred= $329,600 + $42,400 = $372,000
Conversion Cost incurred= $604,500 + $6,250 = $610,750
Cost Per Equivalent Unit = Cost Incurred ÷ Equivalent Unit
Material Cost per equivalent unit = 372,000 ÷ 160,000
= $2.325
Conversion Cost per equivalent unit = 610,750 ÷ 152,500
= $4.004
