Work Problem 5-29 using the weighted average cost method.

Problem 5-29

Owen Tu ("The Count") has estimated unit costs at various production stages in manufacturing baseballs. The unit cost of work done in Operation 1, according to budget estimates, should be $2.50, consisting of a unit cost of $1.60 for materials and a unit cost of $0.90 for labor and overhead. All materials are added at the beginning of the operation, and labor and overhead are added as the work progresses. Cost and production data for Operation 1 are as follows for the month of October:

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Quantities: Units in work in process, October 1 (40% complete).. Units started in production Units in work in process, October 31 (20% complete). Costs charged to operation: Work in process, October 1: Materials. Labor and overhead. October's costs: Materials Labor and overhead Total costs charged 10,000 150,000 5,000 $ 16,000 5,400 $ 21,400 $240,000 182,400 422,400 $443,800 Required: 1. Determine unit costs for materials and for conversion costs. 2. Compare the actual unit costs with the estimated unit costs. Identify sepa- rately any variance of materials cost and any variance of conversion cost.