Question

THE Company operates two departments, the assembly
department and the shipping department. During May,
the assembly department reported the following
information:

                                    % complete    % complete
                            units      DM         conversion 
work in process, May 1      46,000     45%           59%
units started during May    68,000
work in process, May 31     23,000     75%           60%

The cost of beginning work in process and the costs
added during May were as follows:

                                 DM           Conversion
work in process, May 1        $ 60,620         $ 75,775
costs incurred during May     $452,485         $660,325

THE Company uses a weighted average process costing
system.

The unit cost in May with respect to direct materials
was equal to:

Group of answer choices

$6.02

$5.86

$5.31

$4.74

$4.18

none of the above choices are correct

Answer 1

Solution:

	Units	% material	EUP-Materials
Units Completed and transferred out (46000+68000-23000)	91000	100%	91000
units of Ending work in process	23000	75%	17250
Equivalent units of production			108250

Cost per Equivalent unit:	Materials
Cost of Beginning Work in Process	$60,620
Cost added	$4,52,485
Total Costs	$5,13,105
/Equivalent units of Production	108250
Cost per Equivalent unit of Production	$4.74

unit cost in May with respect to direct materials was equal to = $4.74