Question

Hershey Chocolate Company uses a weighted-average process costing system. Hershey provides the following data:

Beginning inventory		-0-
Units started in production		35,400
Units finished during the period		30,000
Units in process at the end of the period   (Complete as to materials, 1/4 complete as to labor and overhead)		5,400
Cost of materials used	$	61,200
Labor and overhead costs	$	112,860

Equivalent units of production for labor and overhead are:

30,000.

35,400.

31,350.

32,700.

Some other amount.

Answer 1

Equivalent unit of labour and overhead = Unit transferred out+(Ending work in process*percent completion)

                                                                = 30000+(5400*1/4)

Equivalent unit of labour and overhead = 31350

So answer is c) 31350