Answer (C) is correct . The weighted-average method averages the work done in the prior period with the work done in the current period. The two layers of units to analyze are those completed during the period and those still in EWIP. The units completed totaled 184,000. The equivalent units of materials in EWIP equaled 43,200 (48,000 physical units ¡Á 90%). Hence, the total equivalent units of materials equaled 227,200 (184,000 + 43,200). The materials cost in BWIP is combined in the weighted-average calculation with the materials cost incurred during the current period. The equivalent-unit materials cost is therefore $2.30 [($54,560 BWIP + $468,000 incurred in May) ¡Â 227,200 EU].Answer (A) is incorrect because The amount of $2.06 is based on weighted-average equivalent units and FIFO costs.
Answer (B) is incorrect because The cost based on the FIFO method is $2.25.
Answer (D) is incorrect because Total materials costs divided by FIFO equivalent units of materials equals $2.51.
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Using the weighted-average method, Albany Mining’s equivalent unit cost of materials for May is
