Compute the cost per equivalent unit for direct materials


The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:


Beginning WIP inventory
Direct materials $ 1,946
Conversion costs 620
Current period costs
Direct materials 22,850
Conversion costs 12,782

Quantity information is obtained from the manufacturing records and includes the following:


Beginning inventory 600 units (60% complete as to materials,
48% complete as to conversion)
Current period units started 3,600 units
Ending inventory 1,100 units (40% complete as to materials,
20% complete as to conversion)

Required:
Compute the cost per equivalent unit for direct materials and conversion costs using the weighted-average method.

 

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Accounting Basics: Compute the cost per equivalent unit for direct materials
Reference No:- TGS048348

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