Reference no: EM133247006
S20mith Company manufactures an electronic equipment on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout the production. Smith Company uses the weighted-average method of process costing.
Data for the Assembly Department for August 2022 are:
Work in process, beginning inventory 268 units
Direct materials (100% complete)
Conversion costs (60% complete)
Units started during August 1063 units
Work in process, ending inventory: 249 units
Direct materials (100% complete)
Conversion costs (75% complete)
Costs for August 2022:
Work in process, beginning inventory:
Direct materials $87825
Conversion costs $114989
Direct materials costs added during August $583042
Conversion costs added during August $396409
Compute Smith Company's direct materials cost per equivalent unit for the month of August 2022. (Round the final answer to 2 decimal places.)