The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing. The conversion costs per equivalent units is:

Question

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.  The conversion costs per equivalent units is:

Quizplus · Accepted Answer

- The total cost incurred in Department #2 for April = $15,360 (sum of debits to Work-in-Process).
- The total equivalent units of production for April = 6,900 (3,600 units completed + 1,500 units in ending WIP inventory + 1,800 units started and completed in April).
- Total conversion cost per equivalent unit = Total cost incurred in Department #2 for April / Total equivalent units of production for April = $15,360 / 6,900 = $2.22 per equivalent unit.
- Since Department #2 uses FIFO costing, the conversion costs per equivalent unit of the 1,200 units in beginning WIP inventory from Department #2 are assumed to have been incurred in a prior period. Therefore, they are not included in the calculation of the conversion costs per equivalent unit for the current period.
- The answer choices given are not exactly equal to the calculated conversion cost of $2.22 per equivalent unit, but the closest choice is C) $2.00.

The Debits to Work-In-Process for Department #2 for the Month