1. Weighted Average Method, Unit Cost, Valuing Inventories

   Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method:

   Units completed	60,000
   Units in EWIP X Fraction complete (36,000 X 60%)	21,600
   Equivalent units of output	81,600
   June's costs to account for are as follows:
   BWIP (10,000 units, 80% complete)	$50,000
   Materials	164,000
   Conversion costs	43,000
   Total	$257,000

   Required:

   1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent. $fill in the blank 1 per unit

   2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in intermediate calculations and final answers to the nearest dollar.

   Cost of ending work in process	$fill in the blank 2
   Cost of the goods transferred out	$fill in the blank 3

   3. Cassien had just finished implementing a series of measures designed to reduce the unit cost to $2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?