Physical units are 40,000.Total conversion costs are $197,500.There are 2,000 units in ending inventory which are 50% complete as to conversion costs.How much are conversion costs per unit if the weighted-average method is used?
A)$5.06
B)$4.93
C)$9.88
D)$5.19

Question

Quizplus · Accepted Answer

Conversion costs per unit = Total conversion costs / (Physical units - Ending inventory units x % complete)= $197,500 / (40,000 - 2,000 x 0.5)= $197,500 / 39,000= $5.06

Physical Units Are 40,000