Answer :
To calculate the cost per equivalent unit, we need to determine the equivalent units of production and divide the total production costs by the equivalent units.
Given:
- Beginning units: 4,000
- Units added: 20,000
- Units completed: 19,000
- Ending units: 40% complete
- Production costs: $63,000
Step 1: Calculate the equivalent units of production for units completed and ending units.
Equivalent units of production = Units completed + (Ending units × Percentage of completion)
Equivalent units of production = 19,000 + (40% × Ending units)
Equivalent units of production = 19,000 + (0.40 × Ending units)
Step 2: Calculate the cost per equivalent unit.
Cost per equivalent unit = Total production costs / Equivalent units of production
Now, let's substitute the given values into the equations:
Equivalent units of production = 19,000 + (0.40 × Ending units)
Cost per equivalent unit = $63,000 / Equivalent units of production
Since the number for the ending units is not provided in the question, we cannot calculate the exact cost per equivalent unit without that information. Please provide the number of ending units, and I will be able to assist you further with the calculation.
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