The costs of materials consumed in producing good units in the Forming Department were $76,000 and $77,350

The costs of materials consumed in producing good units in the Forming Department were $76,000 and $77,350 for September and October, respectively. The number of equivalent units produced in September and October was 800 tons and 850 tons, respectively. Evaluate the change in the cost of materials between the two months.


Answer:









Material cost per ton, September: 
Material cost per ton, October: 
$76,000 
800 

$77,350 
850 
The cost of materials has decreased by $4 per ton between September and October, 
indicating an improvement in the cost of materials.