Bradford Electronics uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month is listed below:
-Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Question

Quizplus · Accepted Answer

To determine the cost per equivalent unit for conversion costs, we need to divide the total conversion costs for the month by the equivalent units of production for conversion costs.

Total conversion costs for the month = £46,800 
Equivalent units of production for conversion costs = 1,704

Cost per equivalent unit for conversion costs = Total conversion costs for the month / Equivalent units of production for conversion costs 
= £46,800 / 1,704 
= £27.51 (rounded to the nearest penny)

Therefore, the closest answer choice is C.

Bradford Electronics Uses the Weighted-Average Method in Its Process Costing