Calculate the unit costs based on the weighted average method of equivalent unit

Question

Calculate the unit costs based on the weighted average method of equivalent units

                                                                                             Materials                   Conversion

Beginning Inventory:                 100 units                        75%                               50%

Beginning Inventory Costs:                                           $1500                           $1200

Units started during period:     400 units

Ending Inventory:                         75 units                         40%                             20%

Cost added during period:                                            $7600                           $9360

Need to find:  Material Cost/Equivalent Unit=?

                         Conversion Cost/Equivalent Unit=?

                         Total Cost/Equivalent Unit=?

Explanation / Answer

Equivalent Unit for Material = 100 + 325 + 75*40% = 455 Unit

Equivalent Unit for Conersion = 100 + 325 + 75*20% = 440 Unit

Material Cost/Equivalent Unit= 9100/455 = $20 per Equivalent Unit

Conversion Cost/Equivalent Unit= 10560/440 = $24 Per Equivalent Unit

Total Cost/Equivalent Unit = (19660 - 20*30 -24*15)/425 = $44 Per Equivalent Unit

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