[futureCPA]

Hi, I understand every part of the answer except how to get the unit cost. I feel like it’s a crazy question but I cannot figure it out for anything. Any help is appreciated. The correct answer is C.

Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

Units:

Beginning work-in-process inventory, May 1 16,000

Started in production during May 100,000

Completed production during May 92,000

Ending work-in-process inventory, May 31 24,000

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs.

Costs pertaining to the month of May are as follows:

Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240.

Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the weighted-average method, the total cost of the units in the ending work-in-process inventory at May 31, 1995, is:

a. $155,328

b. $153,960

c. $156,960

d. $154,800

REG - 70, 72, retake at end of Nov.
BEC - PASS
FAR - 10/20/2015
AUD - PASS