Hi
| Units | Value |
Opening | 5000 | 4300 |
Introduced | 22000 | 109700 |
& Completed | (bal fig) | |
Trfd out | 27000 | |
Clg WIP | 1500 | |
| 28500 | 114000 |
Cost per unit 114000/28500 = 4 | | |
| | |
Thanks for the opportunity
L.Muralidharan
6383228202
Chennai
Original Message:
Sent: 5/29/2023 7:20:00 AM
From: Neha Aggarwal
Subject: RE: SECTION D - PROCESS COSTING - WEIGHTED AVERAGE COST METHOD
The correct answer is D:- $4.00 per EUP
Since this is Weighted average cost method, beginning numbers will take at 100%
Total cost = Beginning cost + Incurred during the year = 4300 + 39700 + 70000 = 114000
Total Equivalent units = Units completed during the year + % of ending inventory completed
= 27000 + 50% * 3000 = 28500
Cost per EUP= 114000/28000 = $ 4.00
Usually, the calculation of DM and conversion cost is done separately, but in this question, % completed provided is same and not different. so we will do the calculation together.
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Neha Aggarwal
Controller
Kalka
India
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Original Message:
Sent: 05-27-2023 05:56 AM
From: SARUN SIMON
Subject: SECTION D - PROCESS COSTING - WEIGHTED AVERAGE COST METHOD
Mack Inc. uses a weighted-average process costing system. Direct materials and conversion costs are incurred evenly during the production process. During the month of October, the following costs were incurred. <o:p></o:p>
Direct materials $39,700 <o:p></o:p>
Conversion costs 70,000 <o:p></o:p>
The work-in-process inventory as of October 1 consisted of 5,000 units, valued at $4,300, that were 20% complete. During October, 27,000 units were transferred out. Inventory as of October 31 consisted of 3,000 units that were 50% complete. The weighted-average inventory cost per unit completed in October was <o:p></o:p>
A.<o:p></o:p>
$3.51<o:p></o:p>
B.<o:p></o:p>
$3.88<o:p></o:p>
C.<o:p></o:p>
$3.99<o:p></o:p>
D.<o:p></o:p>
$4.00<o:p></o:p>
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SARUN SIMON
Accountant
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