Question

# Camino Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory...

Camino Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

 Percent Complete Materials costs \$      5,628 50% Conversion costs \$      4,155 20%

A total of 6,800 units were started and 6,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

 Materials costs \$    28,140 Conversion costs \$    48,475

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

What are the cost per unit of material coming out of this department this month?

 Final ANSWER Cost per unit of material coming out of this department this month 4.80 Working Note: Actual Units Calculation of Physical UNITS: Units in beginning inventory 400 Units started during the period 6800 Units to be accounted for 7200 Actual Units Equivalent Units Material CC Units Completed and Transferred 6100 6100 6100 Units in ending inventory 1100 935 825 Total accounted for 7200 7035 6925 Costs: Material CC Total Costs in beginning inventory 5628 4155 9783 Cost added during the year 28140 48475 76615 Total cost to account for 33768 52630 86398 Equivalent Units from above 7035 6925 Cost per equivalent unit 4.80 7.60

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