Guo Corporation uses the weighted-average method in its process costing system.

Question

Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 850 units. The costs and percentage completion of these units in beginning inventory were:

A total of 11,700 units were started and 11,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

The ending inventory was 90% complete with respect to materials and 80% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 850 units. The costs and percentage completion of these units in beginning inventory were:

Explanation / Answer

Ending Inventory = 850 + 11700 - 11100

= 1450 units

Equivalent units for material = 11100 x 100% + 1450 x 80%

= 12260

Toal Material cost incurred = $241800

Cost per equivalent unit = $241800/12260

= $19.72 per unit

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.