Huffer Company uses the weighted-average method in its process costing system.The following information pertains to Processing Department D for the month of May:
$$\begin{array} { | l | r | r | }
\hline & \text { Number of units } & \text { Cost of materials } \
\hline \text { Beginnirg work in process } & 30,000 & \$ 11,000 \
\hline \text { Started in May } & 8 0 , 0 0 0 & \$ 36,000 \
\hline \text { Units completed } & 8 5 , 0 0 0 & \
\hline \text { Ending work in process } & 25,000 & \
\hline
\end{array}$$
All materials are added at the beginning of the process.Which of the following costs is closest to the cost per equivalent unit for materials?
A) $0.43.
B) $0.45.
C) $0.55.
D) $0.59.

Question

Huffer Company uses the weighted-average method in its process costing system.The following information pertains to Processing Department D for the month of May:
$$\begin{array} { | l | r | r | } 
\hline & \text { Number of units } & \text { Cost of materials } \
\hline \text { Beginnirg work in process } & 30,000 & \$ 11,000 \
\hline \text { Started in May } &  8 0 , 0 0 0 & \$ 36,000 \
\hline \text { Units completed } & 8 5 , 0 0 0 & \
\hline \text { Ending work in process } & 25,000 & \
\hline
\end{array}$$
All materials are added at the beginning of the process.Which of the following costs is closest to the cost per equivalent unit for materials?
A) $0.43.
B) $0.45.
C) $0.55.
D) $0.59.

Quizplus · Accepted Answer

The cost per equivalent unit for materials is $0.43. This is calculated by dividing the total cost of materials used in the period ($36,000 + $11,000 = $47,000) by the total number of equivalent units of production (85,000 units completed + 25,000 units in ending work in process = 110,000 equivalent units).

Huffer Company Uses the Weighted-Average Method in Its Process Costing