Question

Talamoto Co. manufactures a single product that goes through two processes – mixing and cooking. The following data pertains to the Mixing Department for September. 35,000 units 70% 13,000 units 50% 59,000 ? units Work-in-process Inventory Sept. 1 Conversion complete Work-in-process inventory Sept. 30 Conversion complete Units started into production in Sept. Units completed and transferred out Costs Work-in-process inventory Sept.1 Material P Material e Conversion Costs added in September Material P Materiale Conversion $ 99,000 90,000 99,000 $148,000 136,000 291,400 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Cost per equivalent unit for Material P under the weighted average method is calculated to be:

Answer 1

Work in Process, Beginning	35000
Add: Units started during September	59000
Less: Ending inventory	-13000
Units completed and transferred out	81000
	Material P
Units completed and transferred out	81000
Work in process, ending	13000
Equivalent units of production	94000
	Material P
Work in process, beginning	99000
Cost added during September	148000
Total costs	247000
Divide by Equivalent units of production	94000
Cost per Equivalent unit	2.63
$2.63 is correct option