S-T, Inc., processes material in 1,000-gallon batches. Each batch results in 400 gallons of main product X, 500 gallons of main product Y, and 100 gallons of by-product Z. Material is added at the start of the process. The joint products emerge at the end of the process. By-product revenues are treated as a reduction of joint costs at the time of production. Joint costs are assigned to main products using the net realizable value method. Product X sells for $8 per gallon and has separable costs of $2 per gallon. Product Y sells for $11 per gallon and has separable costs of $3 per gallon. By-product Z sells for $1 per gallon.
The beginning inventory consists of two batches averaging 30% and 80% complete. Material costs are $8,550, and conversion costs are $3,007. The ending inventory consists of one batch, which is 50% complete. During the week 20 batches were completed and transferred out. Materials placed into production had a cost of $71,250 and conversion costs totaled $40,470.

Using the weighted-average process costing method, what is the unit cost to be assigned to the completed products X, Y, and Z?

  • CreatedJanuary 26, 2015
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