Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 2012 are as follows:
- WIP, beginning inventory 12/1/12--------------20,000 units
- Direct materials(100%complete)
- Conversion costs (75% complete)
- Started during December----------------------80,000 units
- Completed and transferred out 12/31/12----76,800 units
- WIP, ending inventory 12/31/12--------------16,000 units
- Direct materials(100%complete)
- Conversion costs (65% complete)
Costs for December
WIP, beginning inventory
- Direct materials ------------------------100,000
- Conversion costs--------------------------60,000
- Direct materials added-----------------------200,000
- Conversion costs added--------------------280,000
What is the total cost per equivalent unit using the weighted-average method of process costing?