Equivalent Units; Weighted-Average Equivalent Unit Cost Perrette Motor Company rebuildsautomobile engines that have been damaged or are in need of extensive repair. The rebuilt engine hasa 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 in Dayton, Ohio, specializes in the FordV6 engine. Approximately 600 to 800 engines are rebuilt each month, and the costs of the plant areassigned to monthly production using weighted-average process costing. The current month beganwith a Work-in-Process Inventory of 100 engines, which were 50% complete for direct materialsand 50% complete for conversion costs. The direct 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 shippedout during the month, and total direct materials cost of $550,000 and conversion cost of $640,000were incurred during the month. The ending Work-in-Process of 200 units was 50% complete fordirect materials and 30% complete for conversion costs.Required Compute the cost per equivalent unit for direct materials and conversion for the month

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Equivalent Units; Weighted-Average Equivalent 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 in 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 direct materials
and 50% complete for conversion costs. The direct 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 direct 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
direct materials and 30% complete for conversion costs.
Required Compute the cost per equivalent unit for direct materials and conversion for the month

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