Question

# 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 - Conversion: \$79,700.
Costs incurred in October - Direct Materials: \$646,800.
Costs incurred in October - Conversion: \$919,300.

Calculate the cost per equivalent unit of materials.

Multiple Choice

• \$2.59

• \$2.33

• \$1.89

• \$2.20

• \$2.00

• Correct Answer = Option #5: \$ 2.00 = Cost per EU for Materials
 EUP - Weighted Average Method Units % Material EUP Materials Units TRANSFERRED 330,000 100% 330,000 Units of ENDING WIP 30,000 40% 12,000 Equivalent Units of Production 342,000 COST per EUP Material Cost of Beginning WIP \$          37,200.00 Cost incurred during the period \$        646,800.00 Total Costs Costs \$        684,000.00 Equivalent units of production EUP 342,000 Cost per EUP \$              2.00000 Answer

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