Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 24

Computing Equivalent Units: Weighted-Average Method.

Refer to the data in Exercise 8-23. Cost data for April show the following:

Beginning WIP inventory
Direct materials costs	$24300
Conversion costs	38700
Current period costs
Direct materials costs	$280950
Conversion costs	1,079550

Required

a.Compute the cost equivalent units for the conversion cost calculation assuming Santiago uses the weighted-average method.

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b.Compute the cost per equivalent unit for materials and conversion costs for April.

Step 1 of 4

Equivalent units:

Equivalent units of production are calculated depending on the percentage of completion of a process.