Answer and Explanation:
The computation is shown below:
a. The number of units processed is
= Beginning work in process units + completed and started units - transferred out units
= 440 units + 1,440 units - 1,600 units
= 280 units
b. The material cost per unit is
= Total cost ÷ equivalent units
where,
Total cost is
= Opening work in process + material cost
= $2,220 + $6,610
= $8,830
And, the equivalent units is
= Units transferred out + ending work in process
= 1,600 + 280
= 1,880
So, the material cost per unit is
= $8,830 ÷ 1,880 units
= $4.70
c. The conversion cost per unit is
= Total cost ÷ equivalent units
where,
Total cost is
= Opening work in process + labor cost + overhead cost
= $1,720 + $4,800 + $1,300
= $7,820
And, the equivalent units is
= Units transferred out + ending work in process × completion percentage
= 1,600 + 280 × 40%
= 1,712
So, the material cost per unit is
= $7,820 ÷ 1,712 units
= $4.57
