Answer:
Perrette Motor Company
Computation of the cost per equivalent unit for materials and conversion for the month:
1. Material cost per equivalent unit: $1,100
2. Conversion cost per equivalent unit: $1,350
Explanation:
a) Data and Calculations:
                                 Units     % of completion          Equivalent unit
                                           Materials Conversion    Materials Conversion
Beginning WIP        120         50%        50%                 60                60
a) Started and 
Completed             530        100%       100%             530               530
b) Ending WIP        220          50%        30%              110                  66
Equivalent units                                                        640                596
Cost of production:
                                        Materials      Conversion
Beginning WIP              $68,000          $73,200
Started & completed    636,000           731,400
Total cost                    $704,000       $804,600
Equivalent units               640                   596
Cost per equivalent unit $1,100             $1,350
b) When calculating the equivalent units under the weighted average process costing method, the units beginning work-in-process are not taken into consideration, but the costs are.