Minerva Company uses the weighted average method in its process costing system.
ID: 2459927 • Letter: M
Question
Minerva Company uses the weighted average method in its process costing system. Listed below is cost data for the current month:
Materials costs
Conversion costs
Beginning work-in-process inventory
$4,000
$9,000
Costs incurred in the current month
$40,000
$60,000
There are 10,000 equivalent units for materials and 6,000 equivalent units for conversion.
The cost per equivalent unit for materials is:
Materials costs
Conversion costs
Beginning work-in-process inventory
$4,000
$9,000
Costs incurred in the current month
$40,000
$60,000
Explanation / Answer
Minerva Company Details Materials Cost Conversion Cost Opening WIP 4,000 9,000 Cost incurred during month 40,000 60,000 Total cost 44,000 69,000 Equivalent Units 10,000 6,000 Cost per Equivalent Unit $ 4.40 $ 11.50 So cost per Equivalent unit of materials is $ 4.40