Question

2) _ 2) Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete 65% • 45% Materials costs Conversion costs $ 5,700 $ 6,800 A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs Conversion costs $ $ Cost 125,500 207,000 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: A) $19.61nned withB) $18.19 C) $19.01 D) $20.50 CamScanner

Answer 1

Answer

--Correct Answer = Option 'D' $ 20.50

EUP - Weighted Average Method	Units	% Material	EUP Materials
Units TRANSFERRED	5,900	100%	5,900
Units of ENDING WIP	1,000 [400 + 6500 - 5900]	50%	500
Equivalent Units of Production			6,400
COST per EUP			Material
Cost of Beginning WIP			$             5,700.00
Cost incurred during the period			$        125,500.00
Total Costs		Costs	$        131,200.00
Equivalent units of production		EUP	6,400
Cost per EUP			$            20.50 Answer