The Matsui Lubricants plant uses the weightedaverage 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:

Compute the cost per equivalent unit for direct materials and conversion costs using the weighted-average method. (Round your answers to 2 decimal places.)

Solution

Equivalent unit of production :

Cost per equivalent unit of material = (1940+23630)/3710 = $6.89

Cost per equivalent unit of conversion = (466+13890)/3490 = $4.11