The cost per equivalent unit for materials for the month in the first processing department is closest to:
A)$23.31
B)$23.70
C)$24.43
D)$24.03

Question

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for materials, we need to divide the total cost of materials by the equivalent units produced.
Total cost of materials in the first processing department = $87,600
Equivalent units of materials for the month = (16,200 units x 100%) + (5,400 units x 40%) = 16,200 + 2,160 = 18,360
Cost per equivalent unit of materials = $87,600 / 18,360 = $24.03 (rounded to the nearest cent)
Therefore, the closest answer is C) $24.43.

The Cost Per Equivalent Unit for Materials for the Month