Question

H Inc. uses the weighted-average method in its process costing. The following data concern the company’s Mixing Department for the month of December. Materials Conversion Work in process, December 1 $ 8,430 $ 9,428 Cost added to production in the Mixing Department during December $ 226,800 $ 284,532 Equivalent units of production for December 10,200 9,700 Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December

Answer 1

Answer:

Cost per equivalent unit for materials = $23.06

Cost per equivalent unit for conversion = $30.30

Explanation:

Cost per equivalent unit for materials:

Total cost = Cost of beginning work in process + Costs added during the month

                = $8,430 + $226,800

                = $235,230

Therefore,

cost per equivalent unit:

$=\frac{Total\ cost}{No.\ of\ units}$

$=\frac{235,230}{10,200}$

      = $23.06

Cost per equivalent unit for conversion:

Total cost = Cost of beginning work in process + Costs added during the month

                = $9,428 + $284,532

                = $293,960

Therefore,

cost per equivalent unit:

$=\frac{Total\ cost}{No.\ of\ units}$

$=\frac{293,960}{9,700}$

      = $30.30