Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

Unit % of completion

Beginning working in progress 18,000 80%

Started into production 81,000

Ending working progress 17,000 * 80%

According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Answer:

cost per equivalent unit for conversion costs = $0.873

Explanation:

Completed units = opening inventory + started unit - closing inventory

= 18000 + 81,000 - 17,000 = 82,000 units

Item units Equivalent unit

Completed units 82,000 100% * 82,000 = 82,000

Production 17,000 80% * 17,000 = 13600

Total equivalent unit 95,600

Cost per equivalent unit = total conversion cost / total equivalent units

= ($15,264 + $68,208) / 95,600 units = $0.873

cost per equivalent unit for conversion costs=$0.873