Question

Livingston Co. uses process costing to account for the production of elastic bands. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $30,000 in materials and $40,000 in conversion costs. April costs were $88,000 for materials and $88,000 for conversion costs. During April 11,200 units were completed. Ending work in process inventory was 5,600 units (100% complete for materials, 50% for conversion). The total cost per unit using the weighted average method would be: (Round your intermediate calculations to 3 decimal places.) Multiple Choice $14.038 $14.360 $14.170 $16.167

Answer 1

Answer:

c. $14.170

Explanation:

Equivalent units for materials = (11,200 × 100%) + (5,600 × 100%)

Equivalent units for materials = 16,800

Conversion costs =  (11,200 × 100%) + (5,600 × 50%) = 14,000. Cost per equivalent unit

Conversion costs = ($11,200 + $88,000 )/14,000 = $7.0857  

For materials Cost = ($30,000  + $88,000) / 16,800 = $7.02381

Total cost per unit = $7.0857 + $7.02381

Total cost per unit = $14.10951