Weed Wackers uses process costing and has provided data for its Processing Department for June as follows: $\begin{array}{lrr}&\text { Units }&\text { Cost of Materials }\
\text { Beginning Work in Process inventory } & 2,000 & \$ 21,020 \
\text { Units started in June } & 77,000 & 48,500 \
\text { Units completed } & 75,600 & \
\text { Ending Work in Process inventory } & 3,400 &
\end{array}$ All materials are added at the beginning of the manufacturing process.How much is the cost per equivalent unit for materials during June?
A)$0.88
B)$1.03
C)$0.61
D)Some other answer

Question

Quizplus · Accepted Answer

The cost per equivalent unit for materials is calculated by dividing the total cost of materials by the total units accounted for (completed units + ending work in process). Total cost of materials = $21,020 (beginning inventory) + $48,500 (added in June) = $69,520. Total units accounted for = 75,600 (completed) + 3,400 (ending inventory) = 79,000. Cost per equivalent unit for materials = $69,520 / 79,000 = $0.88.

Weed Wackers Uses Process Costing and Has Provided Data for Its