A Department Adds Materials at the Beginning of the Process $\quad$

question 43

Short Answer

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process.For the month of May, there was no beginning Work in Process; 50,000 units were completed and transferred out; and there were 14,000 units in the ending Work in Process that were 10% complete.During May, $96,000 materials costs and $102,800 conversion costs were charged to the department.How much are unit production costs for materials and conversion costs for May if the weighted-average method is used, rounded to the nearest whole cent? $\quad$$\begin{array}{llcc} \underline{\text { Materials}}& \underline{\text { Conversion Costs }}\\\end{array}$
a) $\quad$$\begin{array}{llcc} \$3.11&\quad\quad\quad\$2.80\end{array}$
b) $\quad$$\begin{array}{llcc}\$1.87&\quad\quad\quad\$2.00\end{array}$
c) $\quad$$\begin{array}{llcc}\$1.66&\quad\quad\quad\$1.61\end{array}$
d) $\quad$$\begin{array}{llcc}\$1.50&\quad\quad\quad\$2.00\end{array}$

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Definitions:

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.

Service

The action or process of serving or providing assistance to others, often in the context of customers or clients.

Estoppel

A rule whereby a person may not deny the truth of a statement of fact made by him or her when another person has relied and acted upon the statement.

Consideration

The benefit or value that must be exchanged between parties to form a valid contract.