Question

XYZ Company operates two departments, the assembly department and the finishing
department, and employs a weighted average process costing system. During June,
the assembly department reported the following information:

                                units     % complete DM    % complete conversion
work in process, June 1        37,000          54%                 72%
units completed during June    52,000
work in process, June 30       24,000          45%                 70%

The cost of beginning work in process and the costs added during June were as
follows:

                                 DM           Conversion
work in process, June 1         $30,320        $75,775
costs added during June         $447220         660,325

XYZ company uses a weighted average process costing system. 

Calculate the unit cost in May with respect to direct materials. 

Answer 1

· Unit Cost with respect to direct materials
= $ 7.60 [or $ 7.60414]

EUP - Weighted Average Method	Units	% Material	EUP Materials
Units TRANSFERRED	52,000	100%	52,000
Units of ENDING WIP	24,000	45%	10,800
Equivalent Units of Production			62,800
COST per EUP			Material
Cost of Beginning WIP			$          30,320.00
Cost incurred during the period			$        447,220.00
Total Costs		Costs	$        477,540.00
Equivalent units of production		EUP	62,800
Cost per EUP			$              7.60414