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
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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