He following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 54,000 $ 148,500 Started in May 144,000 475,200 Units completed 153,000 Ending work in process 45,000 Required: Compute the cost per equivalent unit for materials using the FIFO method. (Round "Cost per equivalent unit" answer to 2 decimal places.)

3.15-- cost per equivalent

Explanation:

                                           Units                             Material Costs

Beginning work in process54,000                                    148,000  

Started in May                      144,000                            475,200  

Units completed                  153,000    

Ending work in process  45,000  

Solution

Equivalent units of materials = Units completed 153,000 + 100% of 45,000 ending work  = 198,000  

Total Material Cost = 148,500 + 475,200 = 623,700  

Cost per equivalent unit for materials = 623,700/198,000 = 3.15

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