Question

In: Accounting

   Crystal Company adds materials at the beginning of the process in its Cutting Department. Additional information...

   Crystal Company adds materials at the beginning of the process in its Cutting Department. Additional information relating to Crystal is as follows:

% Complete        Units

Beginning work-in-process

60%

10,000

Completed and transferred

100%

14,000

Ending work-in-process

40%

4,000

                 Costs                

  Materials     Conversion

Beginning work-in-process

$ 8,000

$15,000

Cost added this period

10,000

16,200

Using the weighted-average method, what was the total cost per equivalent unit

A.

$2.00
B.

$3.00
C.

$3.25
D.

$3.50

Solutions

Expert Solution

Correct answer------------(B) $3.00

Working

Statement of Equivalent Units(Weighted average)
Material Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred                    14,000 100%                    14,000 100%                   14,000
Closing WIP                      4,000 100%                       4,000 40%                     1,600
Total                    18,000 Total                    18,000 Total                   15,600

.

Cost per Equivalent Units (Weighted average)
COST Material Conversion cost TOTAL
Beginning WIP Inventory Cost $ 8,000 $ 15,000 $ 23,000
Cost incurred during period $ 10,000 $ 16,200 $ 26,200
Total Cost to be accounted for $ 18,000 $ 31,200 $ 49,200
Total Equivalent Units                   18,000                     15,600
Cost per Equivalent Units $                   1.00 $                     2.00 $                3.00

ekkarill92 answered 3 years ago
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