Link Company uses a process cost 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 whole unit would be which of the following?
A)$54.00
B)$69.22
C)$60.00
D)$83.82

Question

Quizplus · Accepted Answer

The equivalent units of production are 1,300 completed units plus 200 equivalent units from the 400 units that are 50% complete (400 * 0.5), totaling 1,500 equivalent units. The cost per equivalent unit is $90,000 / 1,500 = $60.00.

Link Company Uses a Process Cost System and the Weighted