ANWSER IN BOLD 7. Jublot Corporation uses the weighted-average method in its pro

Question

ANWSER IN BOLD

7.

Jublot Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

  

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:

$14.48

$17.89

$16.31

$15.88

Beginning work in process inventory:      Units in beginning work in process inventory 900      Materials costs $11,200      Conversion costs $9,800      Percent complete with respect to materials 60%      Percent complete with respect to conversion 40% Units started into production during the month 7,100 Units transferred to the next department during the month 6,000 Materials costs added during the month $115,800 Conversion costs added during the month $145,800 Ending work in process inventory:    Units in ending work in process inventory 2,000    Percent complete with respect to materials 55%    Percent complete with respect to conversion 35%

Explanation / Answer

Calculation of the equivalent cost per unit of material

Equivalent units = 6000+ 2000*55%. = 7100 units

Total cost= 11200+115800= $ 127000

Equivalent cost= 127000/7100 = $17.89

The correct answer is b. $ 17.89

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