Cameron Company uses the weighted-average method in its process costing system.

Question

Cameron Company uses the weighted-average method in its process costing system. The Packaging dept started the month with 290 units in process that were 90% complete, received 1,400 units from the finishing dept, and had 110 units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 60% complete with respect to conversion costs. During the month 1,580 units were completed and transferred out. The department incurred the following costs:

Beginning wip Added this month total

Transferred in 450 13400 13850

800 3100 3900

650 5540 6190

_____ _____ _____

total 1900 22040 23940

The cost per equivalent unit for direct materials is ?

Explanation / Answer

COST PER EU = (1900+22040)/1646

= 14.54

ITEM INPUT PARTICULARS OUTPUT % EQUIVALENT UNITS OPG. WIP 290 TRNSFRD OUT 1580 100 1580 FRESH UNITS 1400 CLOSING WIP 110 60 66 TOTAL 1690 1690 1646

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