In: Accounting
Lebaum Corporation uses the weighted-average method in its process costing system. Data concerning the second processing department for the most recent month are listed below:
Production data: |
|
Units in process, beginning: (materials 60% complete; conversion 20% complete) |
400 units |
Units transferred in during the month from the preceding department: |
1,200 units |
Units completed and transferred out during the month: |
1,000 units |
Units in process, ending: (materials 40% complete; conversion 80% complete) |
? units |
Cost data: |
|
Work in process, beginning: (consists of cost transferred in, $12,400; materials cost, $6,598; and conversion cost, $7,514) |
$ 26,512 |
Costs transferred in during the month: |
$ 126,000 |
Materials cost added during the month: |
$ 82,000 |
Conversion costs incurred during the month: |
$ 108,000 |
What is the cost per equivalent unit for materials? (Choose the closest answer.)
Solution
Cost per equivalent unit for materials= $71.45
Working
Reconciliation of Units | ||
A | Beginning WIP | 400 |
B | Introduced | 1,200 |
C=A+B | TOTAL | 1,600 |
D | Transferred out | 1,000 |
E=C-D | Ending WIP | 600 |
.
Statement of Equivalent Units(Weighted average) | |||||||
Material | |||||||
Units | Complete % | Equivalent units | |||||
Transferred out | 1,000 | 100% | 1,000 | ||||
Ending WIP | 600 | 40% | 240 | ||||
Total | 1,600 | Total | 1,240 |
.
Cost per Equivalent Units (Weighted average) | ||||
COST | Material | |||
Beginning WIP Inventory Cost | $ 6,598 | |||
Cost incurred during period | $ 82,000 | |||
Total Cost to be accounted for | $ 88,598 | |||
Total Equivalent Units | 1,240 | |||
Cost per Equivalent Units | $ 71.45 |