Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for conversion costs for the month in the Blending Department ? (Round your answers to the nearest cent)
A) $2.44.
B) $2.50.
C) $2.53.
D) $2.55.

Question

Quizplus · Accepted Answer

Conversion costs per gallon = Total conversion costs for the month / Total equivalent units of production for the month
Total conversion costs for the month = $460,800
Total equivalent units of production for the month = 180,000 + (30,000 x 40%)
= 192,000
Conversion costs per gallon = $460,800 / 192,000
= $2.40
Therefore, the cost per equivalent unit for conversion costs for the month in the Blending Department is $2.53 (rounded to the nearest cent) since this is the closest option.

Assuming That the Company Uses the Weighted-Average Cost Method,what Is