Chapter 20, Problem 15QS

To determine

Concept Introduction:

Cost per equivalent unit:

Cost per equivalent unit can be defined as the costs that are incurred during the process to the equivalent units of production. In FIFO method, only the costs that are added during the process are assigned to the equivalent units of production for materials and conversion.

Cost per equivalent unit can be calculated as under –

$Costperequivalentunits=\frac{Totalcostaddedduringtheprocess}{Equivalentunitsofproduction}$

To calculate:

The assembly department’s cost per equivalent unit of production for materials and conversion for November using FIFO method.