The various costs for Solomon Ski Company during the recent accounting period are determined as follows:
1. Cost per equivalent unit is <u>$65.</u>
2. Cost of finished goods transferred out from the finishing department is <u>$269,750</u>.
3. Cost of the ending WIP inventory is <u>$15,600</u>.
<h3>What is the cost per equivalent unit?</h3>
The cost per equivalent unit refers to the average cost per unit based on the total production costs divided by the total equivalent units of production.
The equivalent units of production depend on the degree or percentage of completion for the various cost classes.
<h3>Data and Calculations:</h3>
Transfer to finished goods = 4,150
Ending inventory = 480
Degree of completion of the ending inventory = 50%
Total equivalent units = 4,390 (4,150 + 480 x 50%)
Total production costs = $285,350
Cost per equivalent unit = $65 ($285,350/4,390)
Cost of finished goods = $269,750 ($65 x 4,150)
Cost of the ending WIP = $15,600 ($65 x 240)
Thus, equivalent units refer to the degree of work completed per unit.
Learn more about equivalent units of production at brainly.com/question/16259709
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