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# The Cost Per Equivalent Unit

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

Cost Percent Complete
Materials costs 10,600 65%
Conversion costs 12,800 30%

A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs 142,100
Conversion costs 359,500

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
Reference: 4-6

The cost per equivalent unit for materials for the month in the first processing department is closest to:

16.42
15.28
18.29
17.02

#### Solution Summary

The cost per equivalent unit is determined in a few clear, simple lines of calculation.

\$2.19