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.

Work-in-process Inventory Sept. 1		29,000	units
Conversion complete		70	%
Work-in-process inventory Sept. 30		15,000	units
Conversion complete		50	%
Units started into production in Sept.		69,000
Units completed and transferred out		?	units
Costs
Work-in-process inventory Sept.1
Material P	$	116,000
Material Q		106,000
Conversion		116,000
Costs added in September
Material P	$	174,000
Material Q		159,000
Conversion		342,100

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 conversion under the weighted-average method is calculated to be:

• $5.06.

• $4.50.

• $2.70.

• $2.96.

• $2.30.

Answer 1

Work-in-process Inventory Sept. 1	29000
(+) Units started into production in Sept.	69000
(-) Work-in-process inventory Sept. 30	15000
Units completed and transferred out	83000

	Conversion
Units completed and transferred out	83000
Ending equivalent units [ Work-in-process inventory Sept. 30 * % Completion ]	7500
Total equivalent units of production	90500

	Conversion
Cost of Work-in-process Inventory Sept. 1	116000
(+) Costs added in September	342100
Total cost	458100
(/) Total equivalent units of production	90500
Cost per equivalent unit	5.06