Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside's cost per equivalent unit for conversion using weighted average would be

Question

Figure 6-19 Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Refer to Figure 6-19. Rounded to two decimal places, Mountainside's cost per equivalent unit for conversion using weighted average would be

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for conversion using weighted average method, we need to combine the cost of beginning work in process inventory, cost added during the period, and the cost of ending work in process inventory.

The calculation for cost per equivalent unit for conversion is:

Cost of beginning work in process inventory + Cost added during the period + Cost of ending work in process inventory
÷ Equivalent units of production

Cost of beginning work in process inventory for conversion = 70% x 6,000 = 4,200 units 
Cost added during the period = $150,000
Ending work in process inventory for conversion = 60% x 5,000 = 3,000 units
Equivalent units of production = 4,200 + 7,800 = 12,000

Total cost of beginning work in process inventory for conversion = 4,200 x $20 = $84,000
Total cost of ending work in process inventory for conversion = 3,000 x $24 = $72,000

Total cost per equivalent unit for conversion using weighted average method is:

($84,000 + $150,000 + $72,000) ÷ 12,000 = $20.00

Therefore, the best choice is C) $20.00.

Figure 6-19 Mountainside Industries Manufactures Specialized Plastic Boxes in Two