Calculate the cost per equivalent unit for direct materials

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Nicad Ltd produces batteries. All direct materials are added at the beginning of the process, and conversion costs are incurred evenly throughout the manufacturing process. Once each unit is completed, it is transferred to finished goods. Data for the month of October are as follows:

1. Beginning WIP, had 100 units (40% completed) and the following cost:

Direct materials $ 4,000
Conversion costs 1,110

2. Placed into production during October were 400 units. 480 units are fully completed at the end of the period, and the following costs were added to production:

Direct materials $ 22,000
Conversion costs 18,000

3. On 31 October, there were 20 partially completed units in process. These units were 50% complete.

The weighted average method is used to account for the costs of production.

Problem 1: Calculate the cost per equivalent unit for direct materials and conversion costs. (Note: Round to four decimal places if applicable).

Problem 2: Compute the cost of ending WIP and the cost of finished goods inventory.

Reference no: EM132807125

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