The Lakeside Company uses a weighted-average process costing system.The following data are available:$$\begin{array} { | l | r | }
\hline \text { Beginning inventory } & - 0 \
\hline \text { Units started in production } & 20,000 \
\hline \text { Units finished during the period } & 16,000 \
\hline \begin{array} { l }
\text { Units in process at the end of the period } \
\text { (complete as to materials, } 1 / 4 \text { complete as to } \
\text { labor and overhead) }
\end{array} & 4,000 \
\hline \text { Cost of materials used } & \$ 35,200 \
\hline \text { Labor and overhead costs } & \$ 37,400 \
\hline
\end{array}$$
Unit cost of labor and overhead is:

Question

The Lakeside Company uses a weighted-average process costing system.The following data are available:$$\begin{array} { | l | r | } 
\hline \text { Beginning inventory } & - 0 \
\hline \text { Units started in production } & 20,000 \
\hline \text { Units finished during the period } & 16,000 \
\hline \begin{array} { l } 
\text { Units in process at the end of the period } \
\text { (complete as to materials, } 1 / 4 \text { complete as to } \
\text { labor and overhead) }
\end{array} & 4,000 \
\hline \text { Cost of materials used } & \$ 35,200 \
\hline \text { Labor and overhead costs } & \$ 37,400 \
\hline
\end{array}$$
 Unit cost of labor and overhead is:

Quizplus · Accepted Answer

In a weighted-average process costing system, the total cost of labor and overhead is divided by the total number of units produced to determine the unit cost. Since the total cost of labor and overhead is not provided, we cannot calculate the exact unit cost. However, we can use the information provided in the answer choices to determine the best option. 
If we assume that the unit cost of materials is $10.50 (since it is not given in the question), we can use the formula:
Unit Cost = (Total Cost of Materials + Total Cost of Labor and Overhead) / Total Units Produced 
If we plug in the values given in the answer choices, we get:
A) ($10.50 + $2.34) / Total Units Produced
B) ($10.50 + $2.20) / Total Units Produced
C) ($10.50 + $1.97) / Total Units Produced
D) ($10.50 + $1.87) / Total Units Produced
Based on the answer choices, option B gives the highest unit cost of labor and overhead, so it is the best choice.

The Lakeside Company Uses a Weighted-Average Process Costing System Unit Cost of Labor and Overhead Is: A) $2

The Lakeside Company Uses a Weighted-Average Process Costing System Unit Cost of Labor and Overhead Is:

A) $2