Question

I Want To Die, Co. is a manufacturer that uses a process costing system and the weighted average method to calculate costs. The following information is available for the current period for the firm’s Blending department:

Equivalent units of production (EUP) with respect to Direct materials	72,200
Equivalent units of production (EUP) with respect to Conversion costs	54,600
Costs:
Beginning WIP inventory, direct materials costs	$88,900
Beginning WIP inventory, conversion costs	$71,700
Direct materials costs incurred during the current period	$204,500
Conversion costs incurred during the current period	$354,100

Calculate the cost per equivalent unit of production (cost per EUP) with respect to direct materials (round to two decimal places).

Answer 1

Cost per equivalent unit of production (cost per EUP) with respect to direct materials= $ 4.06

Working

Cost per Equivalent Units (Weighted average)
COST		Material
Beginning WIP Inventory Cost (A)		$ 88,900
Cost incurred during period (B)		$ 204,500
Total Cost to be accounted for (C=A+B)		$ 293,400
Total Equivalent Units(D)		72,200
Cost per Equivalent Units (E=C/D)		$ 4.06