Question

The following information is available for Department C for the month of June:

	Units	Cost
Work in process, June 1 (70% complete)	10,000
Direct materials		$ 36,000
Direct labor		18,000
Manufacturing overhead		24,000
Total work in process, June 1		$78,000
Started in production during June	40,000
Costs added:
Direct materials		$108,000
Direct labor		48,000
Manufacturing overhead		60,600
Total costs added during June		$216,600
Work in process, June 30 (80% complete)	4,000

Materials are added at the beginning of the process. Round unit costs to two decimal places.

The cost per equivalent unit of production for materials using the weighted average method is

Answer 1

cost per equivalent unit of production for materials	2.88
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Opening WIP	10,000.00	100%	10,000.00	10,000.00	100%	10,000.00
Units started and completed = 40,000 - 4,000	36,000.00	100%	36,000.00	36,000.00	100%	36,000.00
Ending WIP	4,000.00	100%	4,000.00	4,000.00	80%	3,200.00
Equivalent Units			50,000.00			49,200.00
Opening WIP Costs			36,000.00			42,000.00
Current Month Costs			108,000.00			108,600.00
Total costs			144,000.00			150,600.00
Cost per Equivalent units			2.88			3.06