Question

nacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 1,600 Materials costs $ 13,700 Conversion costs $ 5,800 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 10,300 Units transferred to the next department during the month 9,200 Materials costs added during the month $ 172,800 Conversion costs added during the month $ 242,800 Ending work in process inventory: Units in ending work in process inventory 2,700 Percent complete with respect to materials 90 % Percent complete with respect to conversion 30 % The cost per equivalent unit for materials for the month in the first processing department is closest to:

Answer 1

Answer:

16.55 Dollars

Explanation:

           First we calculate the cost Equivalent units for material.

                                                                               Materials

                                                                 Percentage             Units

Units completed and transferred                    100                900

Ending work in process inventory                   90                  2250

                                                                                               2500x90%=11250

Cost equivalent  Equivalent  units                                         11250

             Now we calculate the cost per equivalent unit for materials

Cost in work at process in beginning                            13500

Cost added during month                                               172600

Total cost                                                                   13250+172600=186100

Cost per unit can be achieved by dividing the total cost by cost of equivalent unit

                               186100/11250= 16.55 Dollars