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Zebra Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in
Zebra Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. Zebra uses the weighted average method. Conversion costs for Department B were 40% complete as to the 12,500 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 17,500 units in the ending work-in-process inventory. 25,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in-process inventories and production activity in Department B for October follows: Transferred- in Costs $ 25,000 60,000 Materials Costs $ 7,500 13,750 Conversion Costs $ 2,500 11,000 WIP, October 1: Costs added in October The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was
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