Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:

Costs for June 2017:

What is the conversion cost per equivalent unit in June?
A)$482.99
B)$659.27
C)$387.14
D)$354.51

Question

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:

Costs for June 2017:

What is the conversion cost per equivalent unit in June?
A)$482.99 
B)$659.27 
C)$387.14 
D)$354.51

Quizplus · Accepted Answer

11ea8a5a_a08f_0a99_a19c_1f5c279679a7_TB5540_00_TB5540_00_TB5540_00 The total conversion cost = $138,500 + $403,500 = $542,000
Conversion cost per equivalent unit = $542,000 / 1400.0 = $387.14