Use the following information for Multiple Choice Questions below:
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
Also assume that current costs included $157,460 of materials and $193,335 of conversion costs. Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.
-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

Question

Use the following information for Multiple Choice Questions below: 
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November:
  Also assume that current costs included $157,460 of materials and $193,335 of conversion costs. Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively.
-Calculate the dollar amount accumulated in the beginning inventory for conversion costs from the prior period.

Quizplus · Accepted Answer

[Not all information below may pertain to this question.]
The solution requires a two-step process. First, calculate the total costs for conversion costs by multiplying the average cost per unit by the total number of equivalent units for the item.
F1F1F1S1uf0b7F1F1F10Total conversion costs = $9.78 per EUP x 20,750 equivalent units = $202,935.
Then, back into the dollar amount added to beginning inventory last period by subtracting the amount of current costs added this year.
F1F1F1S1uf0b7F1F1F10The cost of conversion costs added to beginning inventory last period = Total Conversion Costs $202,935 - Conversion Costs added this period $193,335 =$9,600.
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Use the Following Information for Multiple Choice Questions Below