Excellent 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 65% complete for materials and 25% complete for conversion costs.The ending inventory was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
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Which of the following is the unit cost of materials calculated using the weighted average method? (Note: Round answer to two decimal places.)
A) $4.50
B) $5.49
C) $5.00
D) $5.46

Question

Excellent 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 65% complete for materials and 25% complete for conversion costs.The ending inventory was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
-
 
Which of the following is the unit cost of materials calculated using the weighted average method? (Note: Round answer to two decimal places.)
A) $4.50 
B) $5.49 
C) $5.00 
D) $5.46

Quizplus · Accepted Answer

11ea8a4c_48d7_04b6_a0e6_275ec6f73b08_TB5550_00 *(Ending WIP × 80% complete for materials) = (35,700 × 80%)
**(Ending WIP × 45% complete for conversion costs) = (35,700 × 45%)
Unit direct materials cost = ($46,200 + $617,400) / 120,960 units = $5.49

Excellent Manufacturing Uses a Process Cost System to Manufacture Sensors