Bingo Enterprises manufactures dog grooming products using the FIFO method of process costing. Half of the direct materials are added at the beginning of the production process, with the other half being added when production is 90% complete. Conversion costs are incurred and allocated evenly throughout the process.

At the beginning of May, there were 860 units in-process, all of which were 20% complete with respect to conversion costs. The beginning balances were $4,528 for direct materials and $3,890 for conversion costs.

At the end of May, the units left in WIP were only 50% complete with respect to conversion costs.

During the month, Bingo started 7,000 units and completed 4,000 units. There were $14,967 of direct materials and $10,762 of conversion costs added during May.

Using the FIFO method, what is the cost per equivalent unit of direct materials for May?

Answer rating: 100% (QA)

The cost per equivalent unit of direct materials for May is 199 Here are the steps to calculate the ... View the full answer