Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: The cost per equivalent unit of production for direct materials is:
A) $9.26
B) $4.21
C) $4.97
D) $5.05
E) $5.85

Question

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:  The cost per equivalent unit of production for direct materials is:
A) $9.26 
B) $4.21 
C) $4.97 
D) $5.05 
E) $5.85

Quizplus · Accepted Answer

Cost of beginning WIP $49,000 + costs incurred in February $414,000 = $463,000
Total cost $463,000/Equivalent units of production 110,000 = $4.21 cost per equivalent unit of production.

Andrews Corporation Uses the Weighted-Average Method of Process Costing