Weighted Average Cost for Equivalent Unit
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Ink Co. had beginning work-in-process inventory of $372,480 in Oct. 1. Of this amount $152,460 was the cost of direct materials and $220,020 was the cost of conversion. The 48,000 units in the beginning inventory were 30% complete with respect to both direct materials and conversion costs.
During Oct., 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80% complete with respect to direct materials and 40% complete with respect to conversion costs. Costs incurred during the period amounted to $1,171,800 for direct materials and $1,513,920 for conversion.
REQUIRED:
Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted average method.
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Solution Summary
The expert examines the weighted average cost for equivalent units.
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