Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory:
Units in beginning work in process inventory 900
Materials costs $13,000
Conversion costs $5,100
Percent complete with respect to materials 75%
Percent complete with respect to conversion 20%
Units started into production during the month 9,600
Units completed and transferred to the next department during the month 8,500
Materials costs added during the month $172,100
Conversion costs added during the month $242,100
Ending work in process inventory:
Units in ending work in process inventory 2,000
Percent complete with respect to materials 90%
Percent complete with respect to conversion 30%

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Ice Cream Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to:

=  $17.97.

Explanation:

a) Data and Calculations:

                                                                Units    Materials   Conversion

Beginning work in process inventory     900     $13,000        $5,100

Degree of completion                                               75%              20%

 Units started into production              9,600

Total units in production                    10,500

Units completed and transferred       8,500         100%            100%

Ending work in process inventory     2,000           90%              30%

                                                                Units    Materials   Conversion

Beginning work in process inventory     900     $13,000         $5,100

Costs added during the month                         $172,100      $242,100

Total production costs for the month               $185,100    $247,200

Equivalent units of production:

                                                             Units    Materials           Conversion

Units completed and transferred       8,500    8,500 (100%)   8,500 (100%)

Ending work in process inventory     2,000     1,800 (90%)        600 (30%)

Total equivalent units                                      10,300                9,100

Cost per equivalent unit:

                                                           Materials           Conversion

Total production costs                      $185,100           $247,200

Total equivalent units                           10,300                  9,100

Cost per equivalent unit                       $17.97                $27.16