question archive Bistrol Corporation uses the weighted-average method in its process costing system

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

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Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Percent Cost Complete Materials costs $15,700 75% Conversion costs $7.700 20% A total of 8,400 units were started and 7.500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $186,300 Conversion costs $329,800 The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to: O $23.25 $21.96 O $20.25 $21.44

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The Answer is $23.25

Working:

  Units % Materials EUP-Materials
Units completed 7,500 100% 7,500
Ending work in process inventory [800+8400-7500] 1,700 70% 1,190
Equivalent units of production     8,690
Cost per Equivalent unit of production     Materials
Beginning inventory     $             15,700
Units started during April     $           186,300
Total costs   Costs $           202,000
÷ Equivalent units of production   EUP 8,690
Cost per equivalent unit of materials     $ 23.25