92 minutes remaining | + unlimited extra time 16 of 50 questions remaining\nunits\n12,600\n115,500\nbeginning…

92 minutes remaining | + unlimited extra time 16 of 50 questions remaining\nunits\n12,600\n115,500\nbeginning work - in - process inventory, march 1 92,400\nstarted production during march 35,700\ncompleted production during march i\nending work - in - process inventory, march 31\nthe beginning inventory was 65% complete with respect to materials and 25% complete with respect to conversion costs. the ending inventory was 80% complete with respect to materials and 45% complete with respect to conversion costs.\ncosts pertaining to the month of march are as follows:\nbeginning inventory costs: materials = $46,200; conversion cost = $32,025\ncosts incurred during march: materials used = $617,400; conversion cost = $655,200\nwhich of the following is the unit cost of materials calculated using the weighted average method? (round answer to two decimal places.)\n(a) $4.50\n(b) $5.00\n(c) $5.49\n(d) $5.46\nlast saved 8:05:08 pm\nquestions filter (50)

92 minutes remaining | + unlimited extra time 16 of 50 questions remaining\nunits\n12,600\n115,500\nbeginning work - in - process inventory, march 1 92,400\nstarted production during march 35,700\ncompleted production during march i\nending work - in - process inventory, march 31\nthe beginning inventory was 65% complete with respect to materials and 25% complete with respect to conversion costs. the ending inventory was 80% complete with respect to materials and 45% complete with respect to conversion costs.\ncosts pertaining to the month of march are as follows:\nbeginning inventory costs: materials = $46,200; conversion cost = $32,025\ncosts incurred during march: materials used = $617,400; conversion cost = $655,200\nwhich of the following is the unit cost of materials calculated using the weighted average method? (round answer to two decimal places.)\n(a) $4.50\n(b) $5.00\n(c) $5.49\n(d) $5.46\nlast saved 8:05:08 pm\nquestions filter (50)

Answer

Explanation:

Step1: Calculate equivalent - units of materials

The equivalent - units of materials under the weighted - average method is the sum of units completed and transferred out and the equivalent units in ending work - in - process inventory. First, find the units completed and transferred out. The formula for units to account for is: Beginning work - in - process inventory+Started production = Units to account for. So, $12600 + 115500=128100$ units. The units in ending work - in - process inventory is 35700 units. Since materials are 80% complete in ending work - in - process inventory, the equivalent units of materials in ending work - in - process inventory is $35700\times0.8 = 28560$ units. The units completed and transferred out is $12600 + 115500-35700=92400$ units. The total equivalent units of materials is $92400 + 28560=120960$ units.

Step2: Calculate total materials cost

The total materials cost is the sum of beginning inventory materials cost and materials cost incurred during the month. Beginning inventory materials cost is $$46200$ and materials cost incurred during March is $$617400$. So the total materials cost is $46200 + 617400=$663600$.

Step3: Calculate unit cost of materials

The unit cost of materials is calculated by dividing the total materials cost by the total equivalent units of materials. The unit cost of materials $=\frac{663600}{120960}\approx$5.486$ Rounding to two decimal places, the unit cost of materials is $$5.49$.

Answer:

C. $5.49