Zebra Company manufactures Product Z in a two-stage production cycle in Departments A and B....
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Accounting
Zebra Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. Zebra uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 24,000 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 33,600 units in the ending work-in-process inventory. 48,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in-process inventories and production activity in Department B for October follows:
| Transferred- in Costs | Materials Costs | Conversion Costs | |
|---|---|---|---|
| WIP, October 1: | $ 48,000 | $ 14,400 | $ 4,800 |
| Costs added in October | 115,200 | 26,400 | 21,120 |
The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was:
Multiple Choice
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$2.75.
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$2.95.
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$2.90.
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$2.80.
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$2.85.
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