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3 January, 17:51

Fanciful Structures Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion costin this beginning work-in-process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units werecompleted in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work-in-process inventory ofthe Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 in conversion costs were incurred in the departmentduring the month. What would be the cost per equivalent unit for conversion costs for the month? (Round to three decimal places.)

a. $5.300.

b. $5.458.

c. $4.603.

d. $5.108.

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  1. 3 January, 19:44
    0
    Equivalent unit of conversion = 101,000 + (18000*40%) = 108,200 Units

    Total Conversion Cost = (23,320+529,380) = 552,700

    Cost per equivalent unit of conversion Cost = 552,700/108,200 = 5.108

    Answer is d) 5.108
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