Question

Annenbaum Corporation uses the weighted-average method in its process costing system.

Answer 1

Answer:

The cost per equivalent unit for materials for the month in the first processing department is closest to b) $17.42

Explanation:

First Step

First Calculate the Units of Closing Work In progress.

We Know that the units coming IN the progress should equal units coming OUT of the process

Therefore Units of Closing Work In Progress is = 7000+1000-6500 = 1500

Second Step

Then Secondly Calculate the Total Cost of Raw Materials in the process based on WEIGHTED AVERAGE METHOD.

Therefore Cost of Raw Materials = 6300+126100=132400

Third Step

Calculate Total Equivalent Production Units of Both Completed and Transferred and Closing Work In Progress Units

Therefore Total Equivalent Production Units = 6500×100%+1500×50%=7250

Finally

Calculate Cost per equivalent unit for materials

Cost per equivalent unit=Total Cost of Raw Materials $ 132,400/Total Equivalent Production Units 7,250 = $18.26

Therefore The cost of $18.26 is  closest to  b) $17.42