Answer:
The materials cost per equivalent unit for May is $3
Explanation:
The computation of the materials cost per equivalent unit is shown below:
= Total cost ÷ number of equivalent units
where,
Number of equivalent units = Opening work in progress units × completion units + added units × completion units + ending work in progress units × completion units
= 3,000 units × 100% + 8,500 units × 100% + 1,500 units × 100%
= 3,000 units + 8,500 units + 1,500 units
= 10,000 units
and, the material cost is $30,000
Now put these values to the above formula
So, the cost per unit would equal to
= $30,000 ÷ 10,000 units
= $3
The material added = Finished goods units - opening work in progress units
= 11,500 units - 3,000 units
= 8,500 units
