Link Company uses a process costing system and the weighted average method.During the year the company completed 1,300 units of product.Ending inventory consisted of 400 units that were 50% complete.The total dollar cost associated with production of inventory was $90,000.The cost per equivalent unit would be which of the following?
A) $54.00
B) $69.22
C) $60.00
D) $83.82

Question

Quizplus · Accepted Answer

The cost per equivalent unit is calculated by dividing the total cost by the equivalent units. Equivalent units = completed units + (ending inventory units * percentage complete) = 1,300 + (400 * 0.5) = 1,500. Cost per equivalent unit = $90,000 / 1,500 = $60.00.

Link Company Uses a Process Costing System and the Weighted