Question

46. At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $28,650, consisted of $22,400 of material costs and $6,250 of conversion costs. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. Costs added in the current month consisted of $229,600 of materials costs and $540,500 of conversion costs. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

A. $2.00; $4.50.

B. $1.82; $4.45.

C. $2.05; $4.60.

D. $2.05; $4.45.

E. $2.25; $4.65.

Answer 1

--Correct Answer = Option 'A' $ 2.00 and $ 4.50

--Working #1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	120,000	100%	120,000	100%	120,000
Units of ENDING WIP	15,000	40%	6,000	10%	1,500
Equivalent Units of Production			126,000		121,500

--Working #2 for answer

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          22,400.00		$                                    6,250.00
Cost incurred during the period			$        229,600.00		$                                540,500.00
Total Costs		Costs	$        252,000.00	Costs	$                                546,750.00
Equivalent units of production		EUP	126,000	EUP	121,500
Cost per EUP = ANSWER			$              2.00		$                                      4.50