Java Express is a coffee bean roaster who specializes in dark roasting beans grown in California. During the month, Java added the following costs: Conversion Costs (CC), $5,350; and Direct Materials (DM), $4,800. Their Beginning Work-in-Progress (WIP) Inventory includes the following costs: CC, $950; and DM, $760. Their accountant calculated the following equivalent units for CC to be 6,787, and the equivalent units completed for this month for DM were 7,400. Using the Weighted-Average method, how much total cost will be included in the calculation for cost per equivalent unit for both Conversion Costs and Direct Materials?

Question

Quizplus · Accepted Answer

This question requires an understanding of how the use of the Weighted-Average method impacts the amount of costs that will be included in the calculation of cost per equivalent unit versus what costs must be accounted for. The Weighted-Average method does include the costs of beginning inventory for Conversion Costs or Direct Materials. The Weighted-Average method is concerned with costs accumulated up to this point. Also, disregard any percentages of completion should they be present. Conversion Costs would be $5,350 + $950 = $6,300 and Direct Material costs would be $4,800 + $760 = $5,560.

Java Express Is a Coffee Bean Roaster Who Specializes in Dark