Question

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		2,500
Materials costs	$	14,600
Conversion costs	$	6,700
Percent complete with respect to materials		75	%
Percent complete with respect to conversion		20	%
Units started into production during the month		11,200
Units transferred to the next department during the month		10,100
Materials costs added during the month	$	173,700
Conversion costs added during the month	$	243,700
Ending work in process inventory:
Units in ending work in process inventory		3,600
Percent complete with respect to materials		90	%
Percent complete with respect to conversion		30	%

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Answer 1

	Beginning work in process			2,500	completed & Transferred			10,100
	Started during the year			11,200	Ending work in process			3,600
	units to be accounted			13,700	Units accounted for			13,700
	Equivalent units				%DM	EUP
						materials
	completed & Transferred			10,100	100%	10100
	Ending work in process			3,600	90%	3240
						13340
	Cost per unit
	Beginning work in process				14,600
	added during the year				173,700
	total cost				188,300
	Equivalent units				13,340
	cost per unit				14.12	answer