Question

Holling Inc. uses the weighted-average method in its process costing. The following data concern the company’s Mixing Department for the month of December.

	Materials		Conversion
Work in process, December 1	$	7,830	$	8,828
Cost added to production in the Mixing
Department during December	$	226,200	$	283,932
Equivalent units of production for December		9,600		9,100

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department in December. (Round your answers to 2 decimal places.)

Answer 1

Solution

	Material	Conversion
Cost per equivalent Unit	$                  24.38	$                 32.17

Working

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 7,830	$ 8,828	$ 16,658
Cost incurred during period		$ 226,200	$ 283,932	$ 510,132
Total Cost to be accounted for		$ 234,030	$ 292,760	$ 526,790
Total Equivalent Units		9,600	9,100
Cost per Equivalent Units		$                 24.38	$                   32.17