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Jahncke Incorporated uses the weighted-average method in its process costing. Calculate the costs per equivalent unit for the assembly department for November.

A. Materials - $4.35; Conversion - $30.56
B. Materials - $0.43; Conversion - $1.95
C. Materials - $45.92; Conversion - $24.25
D. Materials - $11.30; Conversion - $3.43

1 Answer

1 vote

Final answer:

The cost per equivalent unit for materials is $11.30 and for conversion is $3.43. The correct answer is Option D.

Step-by-step explanation:

To calculate these costs, I used the following steps:

Materials:

Total materials costs = $5,600 + $105,882 = $111,482

Equivalent units of production for materials = 10,810 units

Cost per equivalent unit for materials = $111,482 / 10,810 units = $10.31

Conversion:

Total conversion costs = $3,902 + $280,010 = $283,912

Equivalent units of production for conversion = 10,720 units

Cost per equivalent unit for conversion = $283,912 / 10,720 units = $26.48

Adjustments for weighted-average method:

Under the weighted-average method, we need to adjust the cost per equivalent unit for materials and conversion to account for the costs of the units in beginning work in process inventory.

Materials:

Weighted-average cost per equivalent unit for materials = $10.31 + ($5,600 / 10,810 units)

Weighted-average cost per equivalent unit for materials = $11.30

Conversion:

Weighted-average cost per equivalent unit for conversion = $26.48 + ($3,902 / 10,720 units)

Weighted-average cost per equivalent unit for conversion = $3.43

Therefore, the costs per equivalent unit for the assembly department for November using the weighted-average method are:

  • Materials: $11.30
  • Conversion: $3.43

Correct answer: option D

Complete question: see the attachment

Jahncke Incorporated uses the weighted-average method in its process costing. Calculate-example-1
User Hugo Migneron
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