Compute Costs per Equivalent Unit: Weighted-Average Method
The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:
Beginning WIP inventory Direct materials
|
$ 976
|
Conversion costs
|
272
|
Current period costs Direct materials
|
11,440
|
Conversion costs
|
6,644
|
Quantity information is obtained from the manufacturing records and includes the following:
Beginning inventory
|
600 units (60% complete as to materials,
|
|
53% complete as to conversion)
|
Current period units started
|
4,000 units
|
Ending inventory
|
1,200 units (40% complete as to materials,
|
|
20% complete as to conversion)
|
Required
Compute the cost per equivalent unit for direct materials and conversion costs.