Answer:
the cost per equivalent unit of materials is a. $2.06.
Explanation:
Step 1 : Calculate the total equivalent units of production for raw materials.
Units completed and transferred (150,000 × 100%) = 150,000
Units in Ending Work in process (32,500 × 100%) = 32,500
Total equivalent units of production for raw materials = 182,500
Step 2 : Calculated the total raw material costs incurred during the period.
Raw material cost in Beginning Work in Process = $48,000
Add Raw Materials Cost Incurred during the period = $328,050
Total raw material costs incurred = $376,050
Step 3 : Calculate the cost per equivalent unit of materials.
Cost per equivalent unit = Total raw material costs incurred ÷ Total equivalent units of production for raw materials
= $376,050 ÷ 182,500
= $2.06
