Use the following information to answer the following Questions
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000

-Universal's equivalent-unit cost for materials is:
A) $4.50.
B) $6.00.
C) $8.00.
D) $9.60.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000

-Universal's equivalent-unit cost for materials is:
A) $4.50.
B) $6.00.
C) $8.00.
D) $9.60.
E) None of the answers is correct.

Quizplus · Accepted Answer

The equivalent units for materials are 40,000 (10,000 beginning + 30,000 started - 5,000 ending not completed). The total material cost is $240,000 ($60,000 beginning + $180,000 current). The equivalent-unit cost for materials is $240,000 / 40,000 = $6.00.

Use the Following Information to Answer the Following Questions