CostPercent Complete Materials costs$ 5,80050% Conversion costs$ 6,50030% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs$ 85,300 Conversion costs$ 168,000 The ending inventory was 70% complete with respect to materials and 10% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:

$11.49

Explanation:

The computation of cost per equivalent unit for materials for the month in the first processing department is shown below:-

Equivalent units for materials

= Units completed and transferred out + Units in ending inventory

 (6,600 × 100%) + ((800 + 7,700 - 6,600) × 70%)

= 6,600 + $1,330

= 7,930 units

Cost per equivalent unit for materials

= (5,800 + $85,300) ÷ 7,930

= $11.49

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