Question

For September, Kimbrell Manufacturing has costs in BWIP equal to 100,000. During September, the manufacturing costs incurred were550,000. Using the weighted average method, Kimbrell had 100,000 units for September. What is the equivalent unit cost for September?

Answer 1

The equivalent unit cost for September using the weighted average method is $5.50 per unit.

Step-by-step explanation:

The weighted average method is used to calculate the equivalent unit cost. The formula for the equivalent unit cost is as follows:

Equivalent Unit Cost (EUC) = Total Cost / Equivalent Units

In this case, the total cost is $550,000 (manufacturing costs incurred in September) and the equivalent units are 100,000 (units in BWIP for September).

EUC = $550,000 / 100,000 = $5.50 per unit

Therefore, the equivalent unit cost for September using the weighted average method is $5.50 per unit.