Annenbaum Corporation uses the weighted-average method in its process costing sy

Question

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,100 units. The costs and percentage completion of these units in beginning inventory were: Percen Materials costs Conversion costs Cost Complete $7,400 $8,500 658 458 4141 A total of 9,900 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month Materials costs Conversion costs Cost $127,200 $208,700 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:

Explanation / Answer

Solution:

Therefore cost per equivalent unit of material for the month in the first processing departmetn is closest to $13.73

Computation of Equivalent unit of Production - Weighted Average - First Processing Department Particulars Physical Units Material Conversion Unit completed & Transferred out 7600 7600 7600 Closing WIP: (2100 + 9900 - 7600) 4400 Material (50%) 2200 Conversion (35%) 1540 Equivalent units of production 12000 9800 9140

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