In its initial year of operation, Montoya Manufacturing started and completed 4,000 identical widgets and had 1,000 widgets that were 40% complete in work-in-process at the end of the year. Total production costs for the year were $55,000.
1) How many total equivalent units were completed during the year?
2) What is the cost per equivalent unit?
4,000 + (1,000 x .40) = 4,400
Total completed + units in progress x percent complete =
This solution calculates the total equivalent units and the cost per equivalent unit for Montoya Manufacturing. Includes 1 reference.