Answer the following questions using the information below:
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department.Direct materials are added at the initiation of the cycle.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some fillets are spoiled due to nondetectible defects.Inspection occurs when units are 50% converted.Spoiled fillets generally constitute 3.5% of the good fillets.Data for April 2018 are as follows:
Costs for April:

-What is the total cost per equivalent unit using the weighted-average method of process costing?
A)$4.00
B)$1.74
C)$2.10
D)$3.84
E)$3.74

Question

Answer the following questions using the information below:
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department.Direct materials are added at the initiation of the cycle.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some fillets are spoiled due to nondetectible defects.Inspection occurs when units are 50% converted.Spoiled fillets generally constitute 3.5% of the good fillets.Data for April 2018 are as follows:
  Costs for April:
 
-What is the total cost per equivalent unit using the weighted-average method of process costing?
A)$4.00 
B)$1.74 
C)$2.10 
D)$3.84 
E)$3.74

Quizplus · Accepted Answer

The total cost per equivalent unit using the weighted-average method is calculated by dividing the total costs (including both beginning inventory and costs added during the period) by the total equivalent units. The correct calculation leads to $3.84.

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