Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March. The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000.
-Refer to Figure 6-7. Using the weighted average method, the unit cost of materials for March is
A) $4.50.
B) $5.33.
C) $5.00.
D) $5.46.

Question

Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March.  The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000. 
-Refer to Figure 6-7. Using the weighted average method, the unit cost of materials for March is
A) $4.50. 
B) $5.33. 
C) $5.00. 
D) $5.46.

Quizplus · Accepted Answer

The weighted average method calculates the unit cost of materials by combining the costs of beginning inventory and purchases within the period, then dividing by the total units. Without the specific values from Figure 6-7, the correct answer is based on the assumption that the calculation aligns with option B, $5.33, which suggests it is the result of such a calculation.