Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Cost per equivalent unit for Material P under the weighted-average method is calculated to be:
A) $2.75.
B) $4.60.
C) $3.00.
D) $2.30.
E) $5.65.

Question

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Cost per equivalent unit for Material P under the weighted-average method is calculated to be:
A) $2.75. 
B) $4.60. 
C) $3.00. 
D) $2.30. 
E) $5.65.

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for Material P using the weighted-average method, you need to divide the total cost of Material P by the equivalent units of Material P produced during the period. 
Total cost of Material P = $5,100
Equivalent units of Material P = 1,700 (1,000 units completed + 700 units in ending work in process)
Cost per equivalent unit of Material P = $5,100 / 1,700 units = $3.00 per unit. Therefore, the correct answer is C.