Question

Aqua Corporation uses the weighted average method in its process costing system. Cost data for its work in process department follow:

Materials Conversion
Beginning work in process $67,000 $48,000
Costs added during the period $125,000 $225,000

Assuming equivalent units of production for materials are 90,000 and for conversion are 20,000, the cost per equivalent unit for materials during the period is closest to: ________

a. $3.89
b. $1.75
c. $1.39
d. $2.13

Answer 1

The cost per equivalent unit for materials is calculated by adding the beginning work in process costs for materials to the costs added during the period, and dividing by the equivalent units. The total cost for materials is $192,000 and there are 90,000 equivalent units, resulting in a cost per equivalent unit of approximately $2.13.

Step-by-step explanation:

To determine the cost per equivalent unit for materials using the weighted average method in process costing, we need to combine the beginning work in process costs for materials with the costs added during the period, and then divide the total cost by the equivalent units of production for materials.

The total cost for materials is the sum of the beginning work in process for materials ($67,000) and the costs added during the period ($125,000), which is $192,000. The cost per equivalent unit for materials is, therefore, $192,000 divided by the 90,000 equivalent units, which gives us approximately $2.13 per equivalent unit.

The correct answer to the question is: d. $2.13

Answer 2

See below

Step-by-step explanation:

The cost per equivalent unit for materials during the period is closest is computed as;

Beginning work in process

$67,000

Add:

Costs added during the period

$125,000

Balance

$192,000

÷

Units of production for materials

90,000

= $2.13