Question

Cost Information and the Weighted Average Method Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below. Direct Materials Conversion Costs Units completed 40,000 40,000 Add: Units in ending work in process × Percentage complete: 10,000 × 100% direct materials 10,000 — 10,000 × 40% conversion materials — 4,000 Eqivalent units of output 50,000 44,000 Costs: Work in process, December 1: Direct materials $62,000 Conversion costs 12,000 Total work in process $74,000 Current costs: Direct materials $530,000 Conversion costs 186,000 Total current costs $716,000 Required: 1. Calculate the unit cost for December, using the weighted average method. Round interim calculations to the nearest cent and, if required, round your answer to the nearest cent.

Answer 1

calculate unit cost

	Direct material	Conversion
Beginning WIP	62000	12000
Cost added	530000	186000
Total Cost	592000	198000
Equivalent unit	50000	44000
Unit cost	11.84	4.50