Answer:
Ice Cream Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.30.
Explanation:
a) Data and Calculations:
                                                   Units       Materials        Conversion
Beginning work in process     2,400      $ 14,500           $ 6,600
Percentage of completion
Beginning work in process                        75%                   20%
Started into production          11,100
Units in production               13,500
Completed and transferred 10,000
Ending work in process         3,500         90%                  30%
Costs added during the month             $173,600       $243,600
Total costs of production
Beginning work in process          $ 14,500           $ 6,600
Costs added during the month    173,600          243,600
Total costs of production            $188,100        $250,200
Equivalent units of production:
Completed and transferred 10,000   10,000 (100%)   10,000 (100%)
Ending work in process         3,500     3,150 (90%)       1,050 (30%)
Equivalent units of production            13,150                11,050
Cost per equivalent unit:
Total costs of production            $188,100        $250,200
Equivalent units of production        13,150              11,050
Cost per equivalent unit                 $14.30            $22.64