(Process Costing: Weighted Average) Massive Mining Co. refines iron ore for export markets. The following data relates to the company’s mine for the month of April:
25,000 units of work in process existed on April 1, the costs for which were as follows:
|
Direct materials |
$18,500 |
|
Conversion |
$36,750 |
Production of 35,000 units commenced during April. The costs incurred during the month for refining were as follows:
|
Direct material |
$300,000 |
|
Conversion |
$230,000 |
The closing work in process on April 30 was 15,000 units. Materials were added at the beginning of the refining process and conversion was one-third complete at month end.
- Calculate the cost per equivalent unit for the month of April using the weighted average method of process costing.
- Calculate the value of work in process and the value of completed inventory transferred to finished goods during the month.