The following information pertains to Oklahoma Co.'s Tulsa Division for the month of April:

Units Materials
Beginning Work-in-Process 16,000 $ 7,500
Started in April 40,400 $ 18,400
Units completed 43,500
Ending Work-in-Process 12,900

All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit of materials is: (CPA adapted) (Round your answer to 2 decimal place.

$0.46

Explanation:

The computation of the cost per equivalent unit of material is shown below:

Units completed    43,500

Add: Ending Work-in-Process12,900

Equivalent units56,400

Beginning Work-in-Process costs$7,500

Add: Started in April costs$18,400

Total costs$25,900

Divide by Equivalent units56,400 units

Cost per equivalent unit of materials$0.46

We simply divide the total cost with the equivalent cost in order to find out the cost per equivalent unit of materials

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