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48. Award: 0 out of 2.00 points MC Qu. 70 Yoder Corporation uses the weighted-av

ID: 2593799 • Letter: 4

Question

48.

Award: 0 out of 2.00 points

MC Qu. 70 Yoder Corporation uses the weighted-average...

Yoder Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

Work in process, beginning:

   Units in process

40,000

   Percent complete with respect to materials

70%

   Percent complete with respect to conversion

60%

   Costs in the beginning inventory:

      Materials cost

$8,600

      Conversion cost

$4,800

Units started into production during the month

750,000

Units completed and transferred out during the month

?

Costs added to production during the month:

      Materials cost

$223,000

      Conversion cost

$149,000

Work in process, ending:

      Units in process

30,000

      Percent complete with respect to materials

40%

Percent complete with respect to conversion

30%


What was the cost per equivalent unit for materials during the month?

A)$0.30

B)$0.15

C)$0.20

D)$0.25

Work in process, beginning:

   Units in process

40,000

   Percent complete with respect to materials

70%

   Percent complete with respect to conversion

60%

   Costs in the beginning inventory:

      Materials cost

$8,600

      Conversion cost

$4,800

Units started into production during the month

750,000

Units completed and transferred out during the month

?

Costs added to production during the month:

      Materials cost

$223,000

      Conversion cost

$149,000

Work in process, ending:

      Units in process

30,000

      Percent complete with respect to materials

40%

Percent complete with respect to conversion

30%

Explanation / Answer

Equivalent units for materials = 40000+(750000-30000)+(30000*40%)= 772000 Cost per equivalent unit for materials =(8600+223000)/772000= 0.30 Option A is correct

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