Question

Tesla Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider...

Tesla Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider the data that follow.

Number
of Units

Cost
of Materials

Beginning work in process

47,700

$ 88,800

Started in June

64,400

190,000

Production completed

81,900

Ending work in process

30,200  

The company's cost per equivalent unit for materials is:

  1. $2.10.  

  2. $1.69.  

  3. $1.51.  

  4. None of these.  

  5. $2.49.  

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Answer #1

Answer: $ 2.49 Working Notes: Equivalent Units of units = Production completed + Ending work in process = 81.900+30.200 = 112

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