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 $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. During April 8,000 units were completed. Ending work in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The total cost per unit using the weighted average method would be:

Question

Phoebe Townsend

Business

25 November, 15:01

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 $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. During April 8,000 units were completed. Ending work in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The total cost per unit using the weighted average method would be:

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Sienna Shaw · Answer 1

The total cost per unit using the weighted average method would be:

$15,97

Explanation:

Materials Conversion Costs

Begining $ 14,000 $ 8,000

APRIL $ 72,000 $ 80,000

TOTAL $ 86,000 $ 88,000

Units 8,000 8,000

100% 50%

WIP 4,000 2,000

TOTAL 12,000 10,000

USD/Unit 7,17 8,80 $15,97