Universal Manufacturing uses a weighted-average process-costing system. All mate
ID: 2426081 • Letter: U
Question
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 16,500 units and 21,500 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 37,800 units into production and completed 32,800 units. Manufacturing costs follow. Beginning work in process: Materials, $62,000; conversion cost, $153,000 Current costs: Materials, $201,000; conversion cost, $537,000
Universal's equivalent-unit cost for materials is:
None of these.
$8.44.
$4.84.
$3.34.
$6.84.
Universal's equivalent-unit cost for conversion cost is:
$21.84.
None of these.
$14.64.
$10.35.
$17.64.
Explanation / Answer
material cost per unit $4.84 per unit
Conversion cost per unit $14.64 per unit
Equivalent units materials conversion
Completed 32,800 32,800
Ending WIP 21,500 14,333
total units 54,300 47,133
Cost materials conversion
Beginning 62,000 153,000
Added 201,000 537,000
total cost 263,000 690,000
units 54,300 47,133
Cost per unit $4.84 $14.64
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