Answer (B) is correct . The weighted-average method averages the work performed 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 48,000 units in EWIP are 40% complete as to conversion cost, the equivalent of 19,200 units. Thus, total equivalent units for conversion cost under the weighted-average method equaled 203,200. Moreover, the conversion cost in BWIP is combined in the weighted-average calculation with the conversion cost incurred during the current period. The equivalent-unit conversion cost is therefore $3.00 [($20,320 DL in BWIP + $15,240 FOH in BWIP + $182,880 DL in May + $391,160 FOH in May) ¡Â 203,200].Answer (A) is incorrect because The FIFO unit cost is $2.92.
Answer (C) is incorrect because The amount of $3.10 is based on FIFO equivalent units and weighted-average cost.
Answer (D) is incorrect because Omitting the equivalent units in EWIP results in $3.31.
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