Aqua Corporation uses the weighted average method in its process costing system. Cost data for its work in process department follow: Materials Conversion
Beginning work in process $67,000 $48,000
Costs added during the period $125,000 $225,000

Assuming equivalent units of production for materials are 90,000 and for conversion are 20,000, the cost per equivalent unit for materials during the period is closest to:

a. $3.89
b. $1.75
c. $1.39
d. $2.13

See below

Explanation:

The cost per equivalent unit for materials during the period is closest is computed as;

Beginning work in process

$67,000

Add:

Costs added during the period

$125,000

Balance

$192,000

÷

Units of production for materials

90,000

= $2.13

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