Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the conversion cost per equivalent unit in March? (Round to the nearest cent)
A)$940.83
B)$1321.81
C)$1310.28
D)$1000.89

Question

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the conversion cost per equivalent unit in March? (Round to the nearest cent)
A)$940.83 
B)$1321.81 
C)$1310.28 
D)$1000.89

Quizplus · Accepted Answer

11ea8a5a_a091_f0dc_a19c_27f614e27622_TB5540_00_TB5540_00_TB5540_00 Total conversion cost = 362,000 + $1,129,000 = $1,491,000
Conversion cost per equivalent unit in June = $1,491,000 / 1128 = 1321.81

Shiffon Electronics Manufactures Music Player