Question

Department F had 4,000 units in work in process that were 40% completed at the beginning of the period at a cost of $12,500. During the period, direct materials were added at a cost of $28,700, and 15,000 units of product were completed. Direct labor was $32,450, and factory overhead was $18,710. At the end of the period, 3,000 units that were 75% completed remained in work in process inventory. Assume that both direct materials and conversion costs are added evenly throughout the process. If process costing with the weighted average method is used, the cost per equivalent unit (rounded to the nearest cent) would be

a.$5.13
b.$5.35
c.$4.63
d.$5.56

Answer 1

The cost per equivalent unit in process costing using the weighted average method is calculated by totaling the costs at the beginning and added throughout the process, and then dividing by the equivalent units of production.

Step-by-step explanation:

The question asks to calculate the cost per equivalent unit using the weighted average method in process costing. We start by finding the total cost which is the sum of costs at the beginning and those added throughout the process. We then calculate the equivalent units of production for both direct materials and conversion costs, considering units completed and units in ending work in process. Afterwards, we calculate the cost per equivalent unit by dividing the total cost by the equivalent units of production. Finally, we round the cost per equivalent unit to the nearest cent to find the correct answer.