Question

Department D had materials costs of $10,000 in beginning work in process inventory and added an additional $50,000 in materials costs this period.
1. If the department had 20,000 EUP for materials, the cost per equivalent unit of production is $ _______.

Answer 1

Answer:

$3

Explanation:

Cost per Equivalent Unit =Total materials costs/EUP

Beginning Costs=10,000

Additional Costs=50,000

Total Costs=10,000+50000=$60,000

EUP=20,000

So

$60,000/20,000=$3