Artemis Inc. manufactures organic cotton dishcloths that it sells in an online store. Their products begin in the cutting department before moving to the sewing department where they are completed. Their accounting department has gathered the following costing information for the month of September:
The following represents the equivalent units of production for the month of September:
Using the Weighted-Average method, calculate the equivalent cost per unit for Transferred-In (TI), Direct Materials (DM), and Conversion Costs (CC) during the month of September. (Round answers to the two decimal places.)

Question

Artemis Inc. manufactures organic cotton dishcloths that it sells in an online store. Their products begin in the cutting department before moving to the sewing department where they are completed. Their accounting department has gathered the following costing information for the month of September:
 The following represents the equivalent units of production for the month of September:
 Using the Weighted-Average method, calculate the equivalent cost per unit for Transferred-In (TI), Direct Materials (DM), and Conversion Costs (CC) during the month of September. (Round answers to the two decimal places.)

Quizplus · Accepted Answer

This question will require multiple steps before arriving at the equivalent cost per unit. First, calculate the total equivalent costs for each cost category. For Transferred-In, Direct Materials, and Conversion Costs, add the costs in beginning WIP Inventory and costs added to WIP inventory. To calculate the equivalent cost per unit, divide the total accounted cost by the equivalent units. Transferred-In: $13,500/ 5,917 units = $2.28 per unit, Direct Materials: $14,958/ 5,917 units = $2.53 per unit, and Conversion Costs: $19,072/5,774 units = $3.30 per unit.