Information concerning Department A of Synergy Company for the month of June is as follows: Materials Units Costs Work in process, beginning of the month 22,000 $15,675 Started in June 93,500 $73,260 Units completed in June 99,000 Work-in-process (WIP), end of the month 16,500 All materials are added at the beginning of the process. Using the first-in, first-out method, which of the following is the cost per equivalent unit with respect to materials? (Note: Round your answer to two decimal places.)

Question

Amiyah Price

Business

28 November, 22:22

Information concerning Department A of Synergy Company for the month of June is as follows: Materials Units Costs Work in process, beginning of the month 22,000 $15,675 Started in June 93,500 $73,260 Units completed in June 99,000 Work-in-process (WIP), end of the month 16,500 All materials are added at the beginning of the process. Using the first-in, first-out method, which of the following is the cost per equivalent unit with respect to materials? (Note: Round your answer to two decimal places.)

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Answers (1)

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Kylie Montes · Answer 1

0.78

Explanation:

beginning 22,000 with a cost of 15,675

started and completed: completed - beginning

99,000 - 22,000 = 77,000

equivalent units ending WIP 16,500 x100% = 16,500

equivalent units for materials 93,500

equivalent cost of materials: 73,260 / 93,500 = 0,78

for the equivalent cost we will calcualte only using the cost added during the period.