The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:
A) $2.48
B) $2.08
C) $2.50
D) $5.25

Question

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:  All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:
A) $2.48 
B) $2.08 
C) $2.50 
D) $5.25

Quizplus · Accepted Answer

To calculate the materials cost per equivalent unit, we need to divide the total materials cost for April by the equivalent units produced during that month.

Total materials cost for April = $52,800
Equivalent units produced = 21,120 units (10,400 + 10,720)

Materials cost per equivalent unit for April = $52,800 / 21,120 = $2.50

Therefore, the answer is (C) $2.50.

The Debits to Work in Process--Assembly Department for April, Together