The debits to Work in Process-Assembly Department for May, together with data concerning production, are as follows: May 1, work in process: Materials cost, 3,000 units $ 8,000 Conversion costs, 3,000 units, 66.7% completed 6,000 Materials added during May, 10,000 units 30,000 Conversion costs during May 31,000 Goods finished during May, 11,500 units 0 May 31 work in process, 1,500 units, 50% completed 0 All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for May is

The materials cost per equivalent unit for May is $3

Explanation:

The computation of the materials cost per equivalent unit is shown below:

= Total cost : number of equivalent units

where,

Number of equivalent units = Opening work in progress units * completion units + added units * completion units + ending work in progress units * completion units

= 3,000 units * 100% + 8,500 units * 100% + 1,500 units * 100%

= 3,000 units + 8,500 units + 1,500 units

= 10,000 units

and, the material cost is $30,000

Now put these values to the above formula

So, the cost per unit would equal to

= $30,000 : 10,000 units

= $3

The material added = Finished goods units - opening work in progress units

= 11,500 units - 3,000 units

= 8,500 units