Bistro corporation use the weighted-average method in its process costing system
ID: 2538007 • Letter: B
Question
Bistro corporation use the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:Cost Percent complete Materials costs $15,700 75% Conversion costs $7,700 20%
A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Costs Materials costs $186,300 Conversion costs $329,800
The ending inventory was 70% complete with respect to materials and 60% complete with respect conversion costs.
The cost per unit equivalent for conversion costs for the first department for the month is closest to:
ion for Chapters 15 Help Seve&Exh; s Bistrol Corporation uses the weighted average method in its process costing system. Thies month, the beginning inventory in the first processing department consisted of 800 units. The costs and ge completion of these units in beginning inventory were Materials costs Conversion costs $15, 700 7,700 753 20% A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs Conversion costs $186, 306 $329,88e The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to Multiple Choice $41 59 17 of 25 Next >
Explanation / Answer
Equivalent unit :
Cost per equivalent unit of material = (15700+186300)/8690 = 23.25 per equivalent unit
Cost per equivalent unit of conversion = (7700+329800)/8520 = 39.61 per equivalent unit
Total cost per equivalent unit = (23.25+39.61) = 62.86 per equivalent unit
Physical unit % EUP-material % EUP-conversion Units completed 7500 100% 7500 100% 7500 Ending work in process 1700 70% 1190 60% 1020 Total 9200 8690 8520Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.