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		2,400
Materials costs	$	14,500
Conversion costs	$	6,600
Percent complete with respect to materials		75	%
Percent complete with respect to conversion		20	%
Units started into production during the month		11,100
Units transferred to the next department during the month		10,000
Materials costs added during the month	$	173,600
Conversion costs added during the month	$	243,600
Ending work in process inventory:
Units in ending work in process inventory		3,500
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

The cost per equivalent unit for materials for the month in the first processing department is closest to:$ 14.30

Working

Reconciliation of Units
A	Opening WIP	2,400
B	Introduced	11,100
C=A+B	TOTAL	13,500
D	Transferred	10,000
E=C-D	Closing WIP	3,500

Statement of Equivalent Units
		Material
	Units	Complete %	Equivalent units
Transferred	10,000	100%	10,000
Closing WIP	3,500	90%	3,150
Total	13,500	Total	13,150

Cost per Equivalent Units
COST		Material
Beginning WIP Inventory Cost		$             14,500
Cost incurred during period		$         1,73,600
Total Cost to be accounted for		$         1,88,100
Total Equivalent Units		13,150
Cost per Equivalent Units		$               14.30