What is the cost per unit for materials? The company uses the weighted average process costing...

Question:

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

Become a Study.com member to unlock this answer!

View this answer

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.

UnitsTotal...

See full answer below.


Learn more about this topic:

Loading...
Weighted Average: Formula, Calculation & Examples

from

Chapter 24 / Lesson 12
481K

Learn what a weighted average is. Understand how to use the weighted average formula. Explore the difference between arithmetic mean and weighted mean.


Related to this Question

Explore our homework questions and answers library