Wyman Corporation
Wyman Corporation.has the following information for May:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (75\% complete as to conversion) } &7,500 \text { units } \
\text { Started } & 27,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (15\% complete as to conversion) } & 9,400 \text { units } \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 25,500\
\text { Conversion } & 52,725
\end{array}$
Current Period Costs:
Material $ \$ 34,300 $
Conversion $ 80,845 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Wyman Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Question

Wyman Corporation
Wyman Corporation.has the following information for May:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (75\% complete as to conversion) } &7,500 \text { units } \
\text { Started } &  27,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (15\% complete as to conversion) } & 9,400 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 25,500\
\text { Conversion } & 52,725
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 34,300 $
Conversion                                                                            $ 80,845 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Wyman Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Quizplus · Accepted Answer

Under the FIFO method, the cost per equivalent unit for conversion is calculated by dividing the total conversion costs (both beginning work in process and costs added during the period) by the equivalent units for conversion. The calculation is as follows:1. Calculate equivalent units for conversion:- Units completed and transferred out: 27,000 units started - 9,400 units in ending WIP = 17,600 units completed.- For beginning WIP (7,500 units), since they were already 75% complete, only the remaining 25% is considered for this period's work.- For ending WIP (9,400 units), only 15% of the conversion work is done in this period.So, equivalent units for conversion = (17,600 units completed) + (9,400 units * 15%) - (7,500 units * 25%) = 17,600 + 1,410 - 1,875 = 17,135 equivalent units.2. Total conversion costs = Beginning WIP conversion costs + Current period conversion costs = $52,725 + $80,845 = $133,570.3. Cost per equivalent unit for conversion = Total conversion costs / Equivalent units for conversion = $133,570 / 17,135 = $7.79.However, since none of the provided options match the calculated value, it seems there might have been a mistake in the calculation process or understanding the question. Based on the provided options and typical calculation methods, the correct approach would involve recalculating or reassessing the given data and steps. Given the discrepancy, the correct answer based on standard calculations cannot be determined from the provided options, indicating a need for clarification or correction in the calculation process.

Wyman Corporation Wyman Corporation Current Period Costs: Material &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp;

Wyman Corporation
Wyman Corporation Current Period Costs:
Material &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp;