Lucas Company uses the weighted-average method in its process costing system. Th

Question

Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows:
Units material cost

work in process on October 1..................... 6000 3000
units started during October ......................50000 25560
units completed and transferred to
the next department during October.............44000
What were the materials cost of work in process at October 31?

Explanation / Answer

    =56000/28560 =0.51 per unit

Units Amount in $ Oct-01 Work in process             6,000            3,000 Units proccessed during the month           50,000          25,560 Total proccessing cost           56,000          28,560 Weighted average cost per unit, c

    =56000/28560 =0.51 per unit

Untis completed and transferred , a           44,000          22,440 Oct-31 Work in proccess (a*c)           12,000            6,120

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