The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process):
| Units | Material Costs | |||
| Beginning work in process | 70,000 | $ | 28,000 | |
| Started in May | 240,000 | 105,200 | ||
| Units completed | 265,000 | |||
| Ending work in process | 45,000 | |||
Required:
Compute the cost per equivalent unit for materials using the FIFO method. (Round “Cost per equivalent unit” answer to 2 decimal places.)
Answer:
cost per equivalent unit for materials using the FIFO method.=$ 0.43
Working notes for the above answer is as under
We have been provided with the information as follow
| Units | |
| Beginning work in process | 70,000 |
| Started in May | 240,000 |
| Units completed | 265,000 |
| Ending work in process | 45,000 |
Now we will compute equivalent unit for materials using the FIFO as follow
| Units | Cost | |
| Beginning work in process | 70,000 | 28,000 |
| Started in May | 240,000 | 105,200 |
| Total | 310,000 | 133,200 |
| Less | ||
| Ending work in process Cost=105200*45000/240000 |
45,000 | 19725 |
| Units completed | 265,000 | 113,475 |
| Per unit cost =113475/265000 |
0.428208 |
