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    Cost per Equivalent Unit of Materials and Conversion Costs

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    Department Alpha had no beginning inventory. The department added direct materials of $100,000 and conversion costs of $150,000 during the month of July. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the period, 40,000 units were completed. At the end of the period 40,000 units remained which were 10% complete. What is the cost per equivalent unit of materials and conversion costs, respectively in July?

    $3.41 and 4.66
    $1.25 and $3.41
    $1.25 and $1.88
    $1.88 and $3.41

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    Solution Preview

    Dear student,

    Weighted average method
    Statement of equivalent production
    MATERIAL conversion costs

    Solution Summary

    The expert examines the cost per equivalent unit of materials and conversion costs.