Gunes Corporation uses the weighted-average method in its process costing system
ID: 2433052 • Letter: G
Question
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,600 units. The costs and percentage completion of these units in beginning inventory were:
A total of 9,300 units were started and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.
The cost per equivalent unit for materials for the month in the first processing department is closest to:
Multiple Choice
$14.03
$16.16
$12.89
$14.63
Cost PercentComplete Materials costs $ 11,400 65% Conversion costs $ 13,600 30%
Explanation / Answer
Ending inventory units = 1600+9300-8200= 2700 Equivalent unit for materials = 8200+(2700*50%)= 9550 Cost per equivalent unit for materials = (11400+142900)/9550= $16.16 Option 2 is correct
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