Question

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units:
Beginning Inventory: 33,000 units, 100% complete as to materials and 60% complete as to conversion.
Units started and completed: 124,000.
Units completed and transferred out: 157,000.
Ending Inventory: 33,500 units, 100% complete as to materials and 25% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $50,000.
Costs in beginning Work in Process - Conversion: $55,850.
Costs incurred in February - Direct Materials: $339,610.
Costs incurred in February - Conversion: $606,150.

Calculate the cost per equivalent unit of materials.

Multiple Choice

  • $2.05

  • $2.04

  • $1.64

  • $2.39

  • $2.63

Homework Answers

Answer #1

Answer:

Calculation of cost per equivalent unit of materials:

Cost per equivalent units of material = (Beginning Material cost + Cost incurred) / Equivalent unit of materials*

= ($50,000 + $339,610) / 190,500 units

= $2.045196 or $2.05 (Rounded off)

Accordingly, Option (A) i.e. $2.05 is the correct answer.

Note:

Determination of Equivalent unit of materials*

Particulars Material
In respect of goods transferred out:
: Material (157,000 x 100%) 157,000
In respect of ending work in progress inventory
: Material (33,500 x 100%) 33,500
Equivalent unit of materials 190,500
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 39,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 138,000. Units completed and transferred out: 177,000. Ending Inventory: 37,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $57,000. Costs in beginning Work in Process -...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 26,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 112,000. Units completed and transferred out: 138,000. Ending Inventory: 30,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $44,000. Costs in beginning Work in Process -...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February...
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 37,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 134,000. Units completed and transferred out: 171,000. Ending Inventory: 36,000 units, 100% complete as to materials and 35% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $55,000. Costs in beginning Work in Process -...
Sparky Corporation uses FIFO method of process costing. The following information is available for February in...
Sparky Corporation uses FIFO method of process costing. The following information is available for February in its molding Department. Units Beginning Inventory 44,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 129,000 Units completed and transferred out: 173,000. Ending inventory  39,500 units, 100% complete as to materials and 35% complete as to conversion. Costs: Costs in beginning Work in process - direct materials; $62,000. Costs in beginning Work in process - conversion; $67.850...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 95,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 280,000. Units completed and transferred out: 375,000. Ending Inventory: 37,500 units, 30% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $52,200. Costs in beginning Work in Process -...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process -...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October...
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process -...
Andrews Corporation uses the weighted-average method of process costing. The following information is available for February...
Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: Equivalent units of production—direct materials 116,000 EUP Equivalent units of production—conversion 100,100 EUP Costs in beginning Work in Process—direct materials $ 57,400 Costs in beginning Work in Process—conversion $ 42,200 Costs incurred in February—direct materials $ 485,300 Costs incurred in February—conversion $ 609,600 The cost per equivalent unit of production for direct materials is: Multiple Choice $4.18 $4.68 $9.44 $5.26...
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products....
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (1,500 units, 100% complete with respect to direct materials, 70% complete with respect to conversion; consists of $45,800 of direct materials cost, $84,695 conversion cost $...
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products....
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (1,500 units, 100% complete with respect to direct materials, 70% complete with respect to conversion; consists of $45,800 of direct materials cost, $84,695 conversion cost $...