Francois pays a lot of attention to the environment outside his company, staying alert for long-run opportunities and problems a
1 answer:
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Answer:
$4.00
Explanation:
Data provided:
Direct material costs in beginning Work-in-Process Inventory = $500
worth of materials is added during the month = $1,500
Equivalent units for direct materials = 500 units
Now,
the total cost incurred
= Direct material costs in beginning Work-in-Process Inventory + worth of materials is added during the month
= $500 + $1,500
= $2,000
Now,
The Cost per equivalent unit for direct materials
=
The Cost per equivalent unit for direct materials =
or
The Cost per equivalent unit for direct materials = $4.00