Average Company uses a weighted-average process-costing system. The Company records disclosed that Department A completed 100,000 units during the month and had 20,000 units in process at month-end, 50% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $401,000, and amounts that relate to the current month totaled $950,000. If conversion is incurred uniformly throughout manufacturing, Average's equivalent-unit cost is:

Question

Quizplus · Accepted Answer

The Answer of Average Company uses a weighted-average process-costing system. The Company records disclosed that Department A completed 100,000 units during the month and had 20,000 units in process at month-end, 50% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $401,000, and amounts that relate to the current month totaled $950,000. If conversion is incurred uniformly throughout manufacturing, Average's equivalent-unit cost is:

Average Company Uses a Weighted-Average Process-Costing System