Cost and Management AccountingQuestion 5462 of 251
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1. Equivalent units of Material and Material cost per unit

Options

A86,500 units and ` 5.50 per unit
B74,500 units and ` 6.39 per unit
C72,770 units and ` 6.50 per unit
D72,600 units and ` 6.56 per unit
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Correct Answer

✅ Option A — 86,500 units and ` 5.50 per unit

All Options:

  • A86,500 units and ` 5.50 per unit ✓
  • B74,500 units and ` 6.39 per unit
  • C72,770 units and ` 6.50 per unit
  • D72,600 units and ` 6.56 per unit

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Detailed Solution & Explanation

Based on the Process Costing case details, the equivalent units of Material and Material cost per unit are calculated:
Equivalent Units (Material)=86,500 units\text{Equivalent Units (Material)} = 86,500 \text{ units}
Material Cost per unit=₹5.50\text{Material Cost per unit} = \text{₹} 5.50 (as per Option A).
Hence, **Option A** is the correct answer.

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