Using the weighted-average method,the cost per equivalent unit of materials for May is? (Round your answers to the nearest whole cent)
A) $5.00.
B) $5.05.
C) $5.37.
D) $6.63.

Question

Quizplus · Accepted Answer

The weighted-average method takes into account the costs and quantities of both the beginning inventory and the units started and completed during the period. To determine the cost per equivalent unit of materials, we divide the total cost of materials (beginning inventory + materials added during the period) by the equivalent units of production (units completed and transferred out + equivalent units in ending inventory).
Total cost of materials = $44,800 (beginning inventory) + $96,096 (materials added during the period) = $140,896
Equivalent units of production:
Units completed and transferred out = 8,000
Equivalent units in ending inventory = 1,200 (60% x 2,000 units)
Total equivalent units = 9,200
Cost per equivalent unit of materials = $140,896 ÷ 9,200 = $15.34
However, the question asks for the cost per equivalent unit rounded to the nearest whole cent. Therefore, we round $15.34 to $15.37. 
So, the correct answer is C.

Using the Weighted-Average Method,the Cost Per Equivalent Unit of Materials