Problem: A company uses a process cost accounting system and the weighted-average method. The following information is available for its current year:
Goods in process, January 1, 2008.............................5,500 units, 80% complete
Goods in process, December 31, 2008........................8,800 units, 40% complete
Units completed and transferred to finished goods 46,900 units
Manufacturing costs during the year....................................$266,300.
Solve for the following:
(a) Calculate the equivalent units of productions for the year.
(b) Calculate the average cost per equivalent unit (round to the nearest cent).