Chae Corporation uses the weighted-average method in its process costing system.
ID: 2422879 • 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 610 units. The costs and percentage completion of these units in beginning inventory were:
A total of 9,200 units were started and 8,050 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 85% complete with respect to materials and 70% 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:
$14.35
Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 610 units. The costs and percentage completion of these units in beginning inventory were:
Explanation / Answer
Units Particulars Units Materials Conversion 610 Opening work inprocess 610 213.50 (35%) 457.50 (75%) 9200 Units Introduced and completed 8050 8050 (100%) 8050 (100%) Trasferred to next process 8660 Closing work in process 1150 977.50 (85%) 805 (70%) 9810 Total 9810 9241 equi units 9312.50 equi units Total cost during the month $137000 $323000 cost per equivalent unit (closest) $14.82 $34.68