Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs, 14,000 units of direct materials were added during the period at a cost of $28,700, 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.
-If the weighted average method is used, the materials cost per unit (rounded to the nearest cent) would be
A)$2.04
B)$1.59
C)$1.91
D)$2.00

Question

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs, 14,000 units of direct materials were added during the period at a cost of $28,700, 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.​
-If the weighted average method is used, the materials cost per unit (rounded to the nearest cent) would be
A)$2.04
B)$1.59
C)$1.91
D)$2.00

Quizplus · Accepted Answer

The weighted average method assigns costs to units based on the average cost per unit. The average cost per unit is calculated by dividing the total cost of production by the total number of units produced. In this case, the total cost of production is $12,500 + $28,700 + $32,450 + $18,710 = $92,360. The total number of units produced is 15,000 + 3,000 = 18,000. Therefore, the average cost per unit is $92,360 / 18,000 = $5.13. Since all materials are added at the beginning of the process, the materials cost per unit is $5.13 * 40% = $2.04.

Department F Had 4,000 Units in Work in Process That