Biology Forums - Study Force

Stewart Manufacturing uses a process costing system. Information regarding units processed and processing costs for the Packaging Department for the most recent period are given below:

​

​

Number

Percentage

​

of Units

Complete

Beginning Work in Process Inventory	1,200	25%
Units started into production	10,000	​
Units completed and transferred out of Packaging	9,400	​
Ending Work in Process Inventory	1,800	35%

The beginning Work in Process Inventory had processing costs of $10,000. During the month, an additional $290,000 in processing costs were incurred. Materials and conversion costs are incurred at the same rate.

Required:

a.	What are the equivalent units for processing costs for the Packaging Department for

the month?

b.	What is the cost per equivalent unit for the month? Round to two decimals.

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