Question

# DM are added at the beginning of the process. Physical units are as follows: Beginning WIP...

DM are added at the beginning of the process. Physical units are as follows: Beginning WIP = 40,000 units, 80% completed last period. Of the 76,000 units started this period, only 42,000 were complete at the end of the period. Ending WIP was 60% complete as to CC. Costs are as follows: Beginning WIP: DM \$41,080; CC \$95,928 Current month costs: DM \$90,000; CC \$157,000 What is CC for C/G/M?

a. \$384,008

b. \$202,540

c. \$252,928

d. \$50,388

 Weighted average cost Beggining units 40000 Transferred out 42,000 Started intro production 76000 Ending units 74,000 Units accounted for 116000 116000 Equivalent units Material Conversion cost Units transferred                      A 42000 42000 Ending Units 74,000 74,000 Completion 100% 60% B 74000 44400 Total units 116000 86400 Cost per equivalent units Particulars Material Conversion cost total As at beginning 41080 95928 137008 Added during the month 90000 157000 247000 Cost to be accounted for 131080 252928 384008 Total eqivalent units 116000 86400 Cost per equivalent unit 1.13 2.93 4.06 Cost per equivalent unit = Cost to be accounted for / Total equivalent units

COrrect answer is A