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Carter Corporation uses the weighted-average method in its process costing syste

ID: 2425987 • Letter: C

Question

Carter 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. Work in process, beginning: Units in beginning work-in-process inventory 600 Materials costs $6,900 Conversion costs $2,500 Percentage complete for materials 80% Percentage complete for conversion 15% Units started into production during the month 6,300 Units transferred to the next department during the month 5,800 Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Ending work in process: Units in ending work-in-process inventory 1,100 Percentage complete for materials 70% Percentage complete for conversion 40% Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department

Explanation / Answer

Statement of equivalent unit for materials

Particulars Units %age Equivalent Material Units Units Trf to next dept 5,800 100% 5,800 Closing Inventory 1,100 70% 770 Total 6,900 6,570
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