The production report for Glenway Company for February contained the following information: Work in process,beginning of the month - 3,500 units;1 / 5 completed
Units completed and transferred to finished goods - 25,000
Work in process,end of month - 4,000 units;1 / 4 completed
Production costs for the month were: materials - $25,325;labor - $20,175;overhead - $38,950.Costs in beginning work in process were $5,250.
What is the cost per equivalent unit?
A)$3.45
B)$3.59
C)$3.20
D)$3.25

Question

Quizplus · Accepted Answer

The cost per equivalent unit is calculated by dividing the total production costs by the total equivalent units. The total production costs are $25,325 + $20,175 + $38,950 = $84,450. The total equivalent units are 25,000 + (4,000 x 1/4) = 26,000. Therefore, the cost per equivalent unit is $84,450 / 26,000 = $3.25.

The Production Report for Glenway Company for February Contained the Following