Byrd Manufacturing decided to analyze certain costs for June of the current year.Units started into production equalled 14,000 and ending Work in Process equalled 2,000 units.With no beginning Work in Process inventory, how much is the conversion cost per unit if ending Work in Process was 25% complete and total conversion costs equalled $50,000 if the weighted-average method is used?
A)$3.13
B)$12.50
C)$4.00
D)$2.00

Question

Quizplus · Accepted Answer

Using the weighted-average method, we need to first calculate the equivalent units of production.

Equivalent Units of Production = Units Completed + (Ending Work in Process x % Complete)

Units Completed = 14,000 - 2,000 = 12,000

Ending Work in Process = 2,000 x 25% = 500

Equivalent Units of Production = 12,000 + 500 = 12,500

Next, we can calculate the conversion cost per unit:

Conversion Cost per Unit = Total Conversion Costs / Equivalent Units of Production

Conversion Cost per Unit = $50,000 / 12,500 = $4.00

Therefore, the correct answer is choice C, $4.00.

Byrd Manufacturing Decided to Analyze Certain Costs for June of the Current