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 Q 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

Quizplus · Accepted Answer

Material Q is added when units are 40% complete, and the cost per equivalent unit is calculated based on the total costs and equivalent units for Material Q. The weighted-average method considers both beginning inventory and current period costs, leading to a cost per equivalent unit of $2.75.