Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory Direct materials $ 1,906 Conversion costs 524 Current period costs Direct materials 23,770 Conversion costs 13,222 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 620 units (60% complete as to materials, 53% complete as to conversion) Current period units started 4,500 units Ending inventory 1,200 units (30% complete as to materials, 20% complete as to conversion) Required: Compute the cost per equivalent unit for direct materials and conversion costs using the weighted-average method. (Round your answers to 2 decimal places.)

Answer 1

Calculation of Total costs

	Direct Materials	conversion costs
Beginning WIP	1906	524
Add-- costs added during current period	23770	13222
Total costs	25676	13746

Calculation of Total Equivalent units

	Direct Material	Conversion
Units completed and transferred	4500*100%=4500	4500*100%=4500
Ending inventory	1200*30%=360	1200*20%=240
Equivalent units	4860 units	4740 units

Calculation of cost per equivalent unit

	Direct Materials	Conversion
Total costs	25676	13746
Equivalent units	4860	4740
Cost per equivalent unit	$5.28 per unit	$2.9 per unit