Kennedy Decorative Tray Company uses the average method and adds materials at the start of production in the Forming Department. Data related to materials used in October 2018 are as follows:

 

                                                                                        Units

                     Work in Process, October 1                     2,150

                     Started in October                                     10,850

                     Completed and transferred out                 10,000

                     Abnormal lost units                                         25

                     Work in process, October 31                       2,975

 

          Cost data

                     Materials in beg WIP inventory                  P60,000

                     Cost of materials added during month       P304,000

 

What is the cost per equivalent of production for materials for the month?

Answer rating: 100% (QA)

To calculate the cost per equivalent unit of production for materials using the average method we ne... View the full answer