Sparky corporation uses the fifo method of process costing. the following information is available for february in its molding department: units: beginning inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion. units started and completed: 110,000.units completed and transferred out: 135,000.ending inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. costs: costs in beginning work in process - direct materials: $43,000.costs in beginning work in process - conversion: $48,850.costs incurred in february - direct materials: $287,000.costs incurred in february - conversion: $599,150.calculate the cost per equivalent unit of materials.

Cost per EUP Materials: $2,05

Explanation:

                                                 Units                Materials              Conversion

Beginning WIP:                      25,000          25,000 (100%)         13,750 (55%)

Units Transferred Out:          135,000          135,000                    135,000

Ending WIP:                            30,000          30,000 (100%)          9,000 (30%)

Equivalent Units of Production (FIFO): Units Transferred Out + Equivalent Units in ending WIP - Equivalent Units in Beginning WIP

EUP Materials: 135,000 + 30,000 - 25,000 = 140,000

Cost per Equivalent Unit (FIFO): Total Cost Incurred in the Period / Equivalent Units of Production

Cost per EUP Materials: 287,000 / 140,000 = $2,05

answer; normative economics;