Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 88,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 266,000. Units completed and transferred out: 354,000. Ending Inventory: 34,000 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials.

$1.86072 per unit

Explanation:

Equivalent unit of material = Units completed and transferred out + Ending Inventory

Equivalent unit of material = 354,000 + (34,000*40%)

Equivalent unit of material = 354,000 + 13,600

Equivalent unit of material = 367,600

Cost per equivalent unit of material = ($37,200 + $646,800) / 367,600

Cost per equivalent unit of material = $684,000 / 367,600 units

Cost per equivalent unit of material = $1.86072 per unit

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