Annenbaum Corporation uses the weighted-average method in its process costing sy

Question

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,500 units. The costs and percentage completion of these units in beginning inventory were:

A total of 8,700 units were started and 7,000 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 conversion costs for the first department for the month is closest to:

Garrison 16e Rechecks 2017-09-08

Multiple Choice

$26.24

$26.60

$21.31

$23.44

Cost Percent
Complete Materials costs $ 6,800 65% Conversion costs $ 7,900 45%

Explanation / Answer

B.$26.60

the following is the calculation:

first let us find out the ending workin process.

equivalent units of production:

cost per equivalent :

cost per equivalent unit = $216,000 / 8120 units =>$26.60

beginning work in process 1500 units started 8700 less:units completed (7000) ending work in process units 3200

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