Mercury Corporation Material A is added at the start of production, while Material B is added uniformly throughout the process.
Refer to Mercury Corporation. Assuming a weighted average method of process costing, compute EUP units for Materials A and B.

Question

Mercury Corporation  Material A is added at the start of production, while Material B is added uniformly throughout the process.
Refer to Mercury Corporation. Assuming a weighted average method of process costing, compute EUP units for Materials A and B.

Quizplus · Accepted Answer

Since Material A is added at the start of production, the EUP units will be equal to the number of units started. Therefore, EUP units for Material A will be 2,700. For Material B, since it is added uniformly throughout the process, the EUP units will be the total number of units produced divided by the total amount of Material B used. In this case, total units produced are 60,000 and total Material B used is 24,500. Therefore, EUP units for Material B will be 2,450 (24,500/60,000 x 6,000). Thus, the best choice is B.

Mercury Corporation Material a Is Added at the Start