Chae Corporation uses the weighted-average method In Its process costing system.
ID: 2426831 • 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 630 units. The costs and percentage completion of these units In beginning Inventory were: A total of 9,400 units were started and 8,150 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 75% complete with respect to materials and 70% complete with respect to conversion costs. 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: $15.10 $14.40 $14.35 $13.68Explanation / Answer
Answer
Answer $15.10
Materials Units transferred to next department 8,150 Ending work in progress Materials (630+9400-8150) =1880*75% 1,410 Equivalent units of production 9,560 Materials Cost of beginning work in process inventory 7200 Cost added during the period 137200 Total cost(a) 144400 Equivalent units of production(b) 9560 Cost per equivalent unit(a/b) 15.1046