Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 44

Equivalent Units; Weighted-Average Unit Cost Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant at Dayton, Ohio specializes in the Ford V6 engine. Approximately 600 to 800 engines are rebuilt each month, and the costs of the plant are assigned to monthly production using weighted-average process costing. The current month began with a work-in-process inventory of 100 engines which were 50% complete for materials and 50% complete for conversion costs. The materials cost in beginning work-in-process was $50,000, while the conversion cost was $60,000. A total of 500 engines were completed and shipped out during the month, and total materials cost of $550,000 and conversion cost of $640,000 were incurred during the month. The ending work-in-process of 200 units was 50% complete for materials and 30% complete for conversion costs.
Required Compute the cost per equivalent unit for materials and conversion for the month.