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 2,500 Materials costs $ 14,600 Conversion costs $ 6,700 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 11,200 Units transferred to the next department during the month 10,100 Materials costs added during the month $ 173,700 Conversion costs added during the month $ 243,700 Ending work in process inventory: Units in ending work in process inventory 3,600 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:

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 2,500 $ 14,600 $ 6,700 75% 20% 11,200 10,100 $ 173,700 $ 243,700 3,600 90% 30% The cost per equivalent unit for materials for the month in the first processing department is closest to: O O O O

Answer 1

	Correct Answer is $ 14.12
	Equivalent Units = Unis completed during the period + Equivalent units in process at the end of period
	Eqyuivalent units = ( 10,100 + ( 3,600 * 90% ) )
	= 13,340 units
	Cost per equivalent uni of material = ( Beginning cost+ Current Cost ) / Equivalent units
	( $ 14,600 + $ 173,700 ) / 13,340 units
	= $ 14.12