A Company Uses a Process Costing System and the Weighted $\quad$

question 130

Essay

A company uses a process costing system and the weighted average method for inventory costs. The following information is available regarding direct labor for the current year:
Ending Work in Process $\quad$ $\quad$ 5,300 units, $50 \%$ complete

Units completed and transferred to finished goods 28,700 units
Direct labor costs during the year $\quad$ $\quad$$\$ 199,300$
Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

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Definitions:

Equity Method

The Equity Method is an accounting technique used by firms to assess the profits earned through their investments in other companies, recording these profits as income from the investment.

Noncontrolling Interest

An equity interest in a subsidiary held by investors other than the parent company, reflecting a share of ownership not providing control.

Goodwill

A non-tangible asset formed during the acquisition of a company for a sum greater than the fair value of its net assets that can be identified.

Equity Method

An accounting technique used to record investments in other companies, where the investment is shown as an asset and changes in the investment's value are reflected in profits or losses.