Question

At the beginning of the month, the Painting Department of Skye Manufacturing had 25,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $33,650, consisted of $27,400 of material costs and $6,250 of conversion costs. During the month the department started 120,000 units and transferred 127,500 units to the next manufacturing department. Costs added in the current month consisted of $260,360 of materials costs and $529,275 of conversion costs. At the end of the month, the department had 17,500 units in inventory, 40% complete as to materials and 15% 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.

Multiple Choice

$2.17; $4.03.

$2.17; $4.20.

$1.92; $4.03.

$2.46; $4.28.

$2.14; $4.12.

Answer 1

• Correct Answer = Option #5:
  $ 2.14 for material, and
  $ 4.12 for conversion
• Working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	127,500	100%	127,500	100%	127,500
Units of ENDING WIP	17,500	40%	7,000	15%	2,625
Equivalent Units of Production			134,500		130,125
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          27,400.00		$                                    6,250.00
Cost incurred during the period			$        260,360.00		$                                529,275.00
Total Costs		Costs	$        287,760.00	Costs	$                                535,525.00
Equivalent units of production		EUP	134,500	EUP	130,125
Cost per EUP			$              2.13948 or $ 2.14		$                                      4.11547 or $ 4.12