38600 is wrong The Plastic Flowerpots Company has two manufacturing departments,

Question

38600 is wrong

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 3.400 units in inventory, 70% complete as to materials. During the month, the molding department started 25,000 units. At the end of the month, the molding department had 5,100 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department st information for the molding depan or the month follows: 5 2,600 41,900 Using the weighted-average method, compute the molding department's (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.) Direct Materials 38,600 (a) Equivalent units of production (b) Cost per equivalent unit of production

Explanation / Answer

a Equivalent units of production = (3400+25000-5100)+(5100*80%)= 27380 b Cost per equivalent unit = (2600+41900)/27380= 1.63

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