BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department has 2,000 units in inventory, 70% complete as to materials. During the month, the roasting department started 18,000 units. At the end of the month, the roasting department had 3,000 units in ending inventory, 80% complete as to materials.
Cost information for the roasting department for the month is as follows:
Beginning work in process inventory (direct materials) . . . . . . . $ 2,170
Direct materials added during the month. . . . . . . . . . . . . . . . . . . 27,900
Using the FIFO method, compute the roasting department’s
(a) Equivalent units of production for materials
(b) Cost per equivalent unit of production for materials for the month.