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10-10-2019
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How is the cost per equivalent unit computed? A. Total equivalent units divided by total costs to account for B. Costs added to production during the month divided by equivalent units in ending WIP C. Total costs to account for divided by total equivalent units D. Costs in beginning WIP Inventory divided by equivalent units in beginning WIP

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Dryomys Dryomys

11-10-2019

Answer: Option (c) is correct.

Explanation:

Cost per equivalent unit is calculated by dividing the total costs by the total equivalent units.

The formula for the cost per equivalent unit is as follows:

[tex]Cost\ of\ per\ equivalent\ unit=\frac{Total\ costs}{Total\ Equivalent\ units}[/tex]

Total costs in the above formula includes direct material, direct labor, manufacturing overhead and selling and other administrative expenses.

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