Malmedy Corporation uses the first-in, first-out method in its process costing system. The following data pertain to operations in the first processing department for a recent month:Work in process, beginning: Units in process?Percent complete with respect to materials75%Percent complete with respect to conversion50%Costs in the beginning inventory: Materials cost$ 2,300Conversion cost$ 3,600Units started into production during the month25,200Units completed and transferred out during the month24,000Costs added to production during the month: Materials cost$ 98,750Conversion cost$ 220,500Work in process, ending: Units in process2,000Percent complete with respect to materials80%Percent complete with respect to conversion45%What was the cost per equivalent unit for materials during the month? $5.00 $2.00 $3.95 $4.50

Cost per unit is the cost accounting concept in which total production cost is estimated and divided…

Answered: Malmedy Corporation uses the first-in,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...

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Malmedy Corporation uses the first-in, first-out method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

Work in process, beginning:
Units in process	?
Percent complete with respect to materials	75%
Percent complete with respect to conversion	50%
Costs in the beginning inventory:
Materials cost	$ 2,300
Conversion cost	$ 3,600
Units started into production during the month	25,200
Units completed and transferred out during the month	24,000
Costs added to production during the month:
Materials cost	$ 98,750
Conversion cost	$ 220,500
Work in process, ending:
Units in process	2,000
Percent complete with respect to materials	80%
Percent complete with respect to conversion	45%

What was the cost per equivalent unit for materials during the month?

		$5.00
		$2.00
		$3.95
		$4.50

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