Roy Company manufactures a product in Departments A and B. Materials are added at the beginning of the process in Department B. Roy uses the weighted-average method in its process costing system. Conversion costs for Department B were 50% complete with respect to the 6,000 units in the beginning work in process and 75% complete with respect to the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February. An analysis of the costs in Department B for February follows: The total cost per equivalent unit during February was closest to: Select one: a. $2.75 b. $2.78 c. $2.82 d. $2.85

Question

Business

Cecilia Maxwell

29 December, 19:51

Roy Company manufactures a product in Departments A and B. Materials are added at the beginning of the process in Department B. Roy uses the weighted-average method in its process costing system. Conversion costs for Department B were 50% complete with respect to the 6,000 units in the beginning work in process and 75% complete with respect to the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February. An analysis of the costs in Department B for February follows: The total cost per equivalent unit during February was closest to: Select one: a. $2.75 b. $2.78 c. $2.82 d. $2.85

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Answers (1)

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Mckenzie Grimes · Answer 1

The question is missing cost figures so it's not possible to determine the equivalent cost per unit

Explanation:

More information is needed. However we can still determine the total equivalent units.

It is given that a total of 12000 units were completed and transferred out of department B for February. We're left with 6000 units in beginning work in process that are 50% complete. Thus 6000 x 50% = 3000 equivalent units in beginning work in process

75% of units in ending work in process are complete. Thus 75% x 8000 = 6000 equivalent units.

The total equivalent units for February will be 9000 + 12000 completed units which is 21000 units.

However we need additional costing information that is missing to complete the question.