Question

In the current period, Forward Co. started with the production of 21,000 units and completed 8,400 units, leaving 13,200 units in process that are 42% complete. If Forward Co. incurred production costs of $34,980, what was Forward's cost per equivalent unit for the period

Answer 1

Answer:

$2.51 per unit

Explanation:

The computation of the cost per equivalent unit is shown below:

But before that the equivalent units is to be computed

Equivalent units = units completed + equivalents units in ending inventory

= 8,400 units + (13,200 units × 42%)

= 13,944 units

Now

Cost per equivalent unit = cost incurred ÷ equivalent units

= $34,980 ÷ 13,944  units

= $2.51 per unit