Question

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,400 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	12,200				65%
Conversion costs	$	14,400				30%

A total of 10,100 units were started and 9,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	143,700
Conversion costs	$	361,100

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Answer 1

	Beggining units	2400	Transferred out	9000
	Stated intro production	10100	Ending units	3500
		12500		12500
	Equivalent units	Material	Conversion
	Units transferred A	9000	9000
	Ending Units	3500	3500
	Completion	50%	35%
	B	1750	1225
	Total units	10750	10225
	Cost per equivalent units
	Particulars	Materials	Conversion cost	total
	As at beginning	12200	14400	26600
	Added during the month	143700	361100	504800
	Cost to be accounted for	155900	375500	531400
	Total equivalent units	10750	10750
	Cost per equivalent unit	14.50	34.93	49.43
	Cost per equivalent unit = Cost to be accounted for / Total equivalent units

So the correct answer is $14.50