What is the cost per unit for materials? The company uses the weighted average process costing system and had the following data:
Beginning work in process of 48,900 units at total cost of materials of $86,300. The company started 64,500 units in June at a total cost of materials of $139,000. Production completed was 76,100 units and ending work in process inventory was 37,300 units.
Weighted Average Costing System:
The weighted average cost method is the simplest inventory costing method. This is because, in contrast to FIFO, LIFO, and Specific Identification which typically require meticulous record keeping, this method only requires two figures: the total inventory cost and the total number of units in inventory. The weighted average cost per unit is calculated as follows:
- Weighted Average Cost Per Unit = Total Cost of Inventory / Total Units in Inventory
Answer and Explanation: 1
To calculate the total cost per unit for materials, we'll first need to find the total cost of materials and the total number of units.
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 24 / Lesson 12
Learn what a weighted average is. Understand how to use the weighted average formula. Explore the difference between arithmetic mean and weighted mean.