Zeus Corporation produces cultured diamonds via a secretive process that grows t

Question

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. Below is the company's calculation of cost per equivalent unit for October. During October, the company completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.

Explanation / Answer

Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent mat Opening WIP                             -   0%                                 -                               -   0%                                 -   Units started and completed                8,000.00 100%                    8,000.00                8,000.00 100%                    8,000.00 Closing WIP                4,000.00 60%                    2,400.00                4,000.00 40%                    1,600.00 Equivalent Units                 10,400.00                    9,600.00 Current Month Costs Cost per Equivalent units = Current Month Costs/Equivalent Units Dear Student With the information given we are unable to complete your question. However I have solved it to the maximum extent possible from given information. Please enter Current Month Costs and then divide it by equivalent unit to get cost per equivalent unit

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