Albany Mining Corporation uses a process costing system for its ore extraction operations. The following information pertains to work-in-process inventories and operations for the month of May:

Costs for the month were as follows:
 
Under the FIFO method, Albany Mining’s equivalent unit cost of materials for May is

A. $2.06

B. $2.25

C. $2.30

D. $2.51

Transcribed Image Text:

Incurred in BWIP May Completion % Direct Units Materials Conversion $54,560 $ 468,000 materials Direct 20,320 182,880 BWIP on May 1 32,000 60% 20% labor Started in production 200,000 Factory 15,240 391,160 overhead Completed (184,000) production $90,120 $1,042,040 EWIP on May 31 48,000 90% 40% Incurred in BWIP May Completion % Direct Units Materials Conversion $54,560 $ 468,000 materials Direct 20,320 182,880 BWIP on May 1 32,000 60% 20% labor Started in production 200,000 Factory 15,240 391,160 overhead Completed (184,000) production $90,120 $1,042,040 EWIP on May 31 48,000 90% 40%

Answer rating: 100% (QA)

Under weighted average method equivalent units are to be calculated only for units completed transfe... View the full answer