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:
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. |