Question

The Lakeside Company uses a weighted average process costing system. The following data are available: 23,200 17,500 Beginning inventory Units started in production Units finished during the period Units in process at the end of the period (complete as to materials, % complete as to labor and overhead) Cost of materials used Labor and overhead costs 5,700 $55,080 $57,075 Total cost of the 17,500 units finished is:

Answer 1

Equivalent units:

Material = 23,200 (All the material are introduced at the beginning)

Conversion = 17,500 + (5,700 X 25%)

= 18,925

Cost per equivalent unit:

Material:

= $55,080 / 23,200

= $2.37

Conversion:

= $57,075 / 18,925

= $3.02

Cost of 17,500 units finished:

= 17,500 X ($2.37 + 3.02)

= $94,325 approximately