Question
Lights Incorporated calculates cost for an equivalent unit of production using the weighted-average method. Data for July: Work-in-process inventory, July 1 (36,000 units): Direct materials
Lights Incorporated calculates cost for an equivalent unit of production using the weighted-average method.
Data for July: |
|
Work-in-process inventory, July 1 (36,000 units): |
|
Direct materials (100% completed) | $122,400 |
Conversion (50% completed) | 76,800 |
Balance in work in process inventory, July 1 | $199,200 |
Units started during July | 90,000 |
Units completed and transferred | 102,000 |
Work-in-process inventory, July 31: |
|
Direct materials (100% completed) | 24,000 |
Conversion (50% completed) |
|
Cost incurred during July: |
|
Direct materials | $180,000 |
Conversion costs | 288,000 |
Cost per equivalent unit for materials under the weighted-average method is calculated to be:
| A) $2.00. | |
| B) $2.40. | |
| C) $3.00. | |
| D) $3.10. | |
| E) $3.20. |
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