Answer:
$3.74 per equivalent unit
Explanation:
beginning WIP 10,000 units, which were 70% complete = 7,000 equivalent units
units started and completed during the month 50,000
ending WIP 5,000, which were 10% complete = 500 equivalent units
costs incurred = $200,000
under FIFO, total equivalent units:
beginning WIP completed (100% - 70%) x 10,000 = 3,000 units
+ units started and completed 50,000 units
<u>+ ending WIP 5,000 x 10% = 500 </u>
total units = 53,500 equivalent units
cost per equivalent unit = $200,000 / 53,500 = $3.738 or $3.74 per equivalent unit
