Question

ink 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

Answer 1

Answer:

The Cost per Equivalent Whole Unit would be of $60

Explanation:

Units of product completed during the year: 1,300

Ending Work in Process Inventory: 400 units

Ending Work in Process percent of completion: 50%

Equivalent units in process: 200 (400 units x 50%)

Total Equivalent Units (completed + in process): 1,500

Total production cost of inventory: $90,000

Cost per Equivalent Unit: Total production cost / Total Equivalent Units

Cost per Equivalent Unit: $90.000 / 1500 units = $60