Question

Inacio 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 Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion 2,400 $ 14,500 $ 6,600 75% 20% 11,100 10,000 $ 173,600 $ 243,600 3,500 908 30% The cost per equivalent unit for materials for the month in the first processing department is closest to:

Answer 1

The cost per equivalent for materials for the month in the first processing department is closest to: $14.30 Workings: Equivalent units of production: Weighted-Average Method Physical Flow of production Units Direct Materials Conversion Beginning work in process inventory Units Started into production during the month To account for 2.400 11.100 13,500 Units transferred to next department Ending work in process inventory Unit Accounted for (Equivalent unit) 10.000 3,500 13,500 10.000 3.150 13.150 10.000 1,050 11.050 Materials Conversion 3.150 Ending work in process: (3.500 units * 90% complete) (3.500 units * 30% complete) Equivalent units of production 3,150 1,050 1,050 Cost of beginning work in process Cost added during the period Total cost (a) Equivalent units of production (b) Cost per equivalent unit (a) (b) Materials Conversion $14.500 $6.600 $173,600 $243.600 $188.100 $250.200 13.150 11.050 $14.30 $22.64