Short Exercise 19-5 Determining Unit Cost: FIFO Costing Method

Pearl Glaze adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. The following information is from Pearl Glazes records for July.

	Units in beginning inventory	3,000
	Units started during the period	17,000
	Units partially completed in prior period	2,500
	Percentage of completion of ending	100%	for direct materials;
	work in process inventory	70%	for conversion costs
	Percentage of completion of beginning	100%	for direct materials;
	inventory in prior period	40%	for conversion costs

Using the data that follow, compute the total cost per equivalent unit:

	Equivalent Units of Production
Direct materials	17,000
Conversion costs	18,050

	Beginning Work in Process	Costs for the Period
Direct materials	$7,600	$20,400
Conversion costs	2,545	32,490

Total cost per equivalent unit

$