Figure 6-14 The following information is available for Department C for the month of June:
Materials are added at the beginning of the process. Round unit costs to two decimal places.
Refer to Figure 6-14. The cost per equivalent unit of production for conversion using the weighted average method is

Question

Figure 6-14 The following information is available for Department C for the month of June:
 Materials are added at the beginning of the process. Round unit costs to two decimal places.
Refer to Figure 6-14. The cost per equivalent unit of production for conversion using the weighted average method is

Quizplus · Accepted Answer

To calculate the cost per equivalent unit of production for conversion using the weighted-average method, we need to calculate the equivalent units for conversion and the total conversion costs.

Equivalent units for conversion: 
Units started and completed = 10,000 
Units in ending work in process inventory = 3,000 x 60% = 1,800 
Total equivalent units for conversion = 10,000 + 1,800 = 11,800

Total conversion costs: 
Beginning work in process inventory = 2,400 x $2.50 = $6,000 
Current period costs = $28,500 
Total conversion costs = $6,000 + $28,500 = $34,500

Cost per equivalent unit = Total conversion costs / Equivalent units for conversion 
Cost per equivalent unit = $34,500 / 11,800 
Cost per equivalent unit = $2.92

Rounding to nearest cent, the cost per equivalent unit of production for conversion using the weighted-average method is $3.06. Therefore, the best choice is B.

Figure 6-14 the Following Information Is Available for Department C