Chae Corporation uses the weighted-average method in its process costing system.
ID: 2416612 • Letter: C
Question
Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 740 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $8,300 80% Conversion costs $7,300 30% A total of 8,500 units were started and 7,800 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 $138,300 Conversion costs $324,300 The ending inventory was 90% complete with respect to materials and 85% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for materials for the month in the first processing department is closest to:
Explanation / Answer
Beginning material cost 8300
Material cost 138300
A 146600
Units
Beginning material units 148
(740 units @ 20%)
Material units 7650
(8500 units @ 90%)
B 7798
Units per unit A/B 18. 8
Beginning conversion cost 7300
Conversion Cost 324300
331600
Units
Beginning material units 518
(740 units @ 70%)
Material units 7225
(8500 units @ 85%)
B 7743
Units per unit A/B 42. 83