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19 May, 17:46

nacio 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 1,600 Materials costs $ 13,700 Conversion costs $ 5,800 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 10,300 Units transferred to the next department during the month 9,200 Materials costs added during the month $ 172,800 Conversion costs added during the month $ 242,800 Ending work in process inventory: Units in ending work in process inventory 2,700 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:

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  1. 19 May, 20:33
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    16.55 Dollars

    Explanation:

    First we calculate the cost Equivalent units for material.

    Materials

    Percentage Units

    Units completed and transferred 100 900

    Ending work in process inventory 90 2250

    2500x90%=11250

    Cost equivalent Equivalent units 11250

    Now we calculate the cost per equivalent unit for materials

    Cost in work at process in beginning 13500

    Cost added during month 172600

    Total cost 13250+172600=186100

    Cost per unit can be achieved by dividing the total cost by cost of equivalent unit

    186100/11250 = 16.55 Dollars
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