Halston Company has no beginning Work in Process; 5,000 units are transferred out and 1,000 units in ending Work in Process are 25% finished as to conversion costs and fully complete as to materials cost.If materials added and beginning Work in Process materials cost totals $18,000, how much is the materials cost per unit if the weighted-average method is used?
A)$3.00
B)$3.43
C)$3.13
D)There is not enough information provided.

Question

Quizplus · Accepted Answer

The materials cost per unit is calculated by dividing the total materials cost by the total units accounted for. Since all materials are added at the beginning of the process, the total units accounted for include both the units transferred out (5,000) and the units in ending Work in Process (1,000), regardless of their stage of completion. Therefore, the total units accounted for are 5,000 + 1,000 = 6,000 units. The total materials cost is given as $18,000. Thus, the materials cost per unit is $18,000 / 6,000 units = $3.00.

Halston Company Has No Beginning Work in Process; 5,000 Units