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 2,300 Materials costs $ 14,400 Conversion costs $ 6,500 Percent complete with respect to materials 75% Percent complete with respect to conversion 20% Units started into production during the month 11,000 Units transferred to the next department during the month 9,900 Materials costs added during the month $ 173,500 Conversion costs added during the month $ 243,500 Ending work in process inventory: Units in ending work in process inventory 3,400 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: Multiple Choice $12.21 $13.15 $11.90 $14.50

Answer 1

Inacio Corporation

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

= $14.50

Step-by-step explanation:

a) Data and Calculations:

Units Materials Conversion

Beginning work in process 2,300 $14,400 $6,500

Percentage of completion 75% 20%

Units started during the month 11,000

Total units available 13,300

Units transferred to the next 9,900 100% 100%

Ending work in process 3,400 90% 30%

Costs added during the month $173,500 $243,500

Equivalent units of production:

Units Materials Conversion

Units transferred to the next 9,900 9,900 (100%) 9,900 (100%)

Ending work in process 3,400 3,060 (90%) 1,020 (30%)

Equivalent units of production 12,960 10,920

Costs of production: Materials Conversion

Beginning work in process $14,400 $6,500

Costs added during the month 173,500 243,500

Total costs of production $187,900 $250,000

Cost per equivalent unit: Materials Conversion

Total costs of production $187,900 $250,000

Equivalent units of production 12,960 10,920

Cost per equivalent unit $14.50 $22.89