Question

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

Answer 1

• 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