Answer:
The cost per equivalent unit for transferred-in costs and for conversion costs for the Packaging Department using the weighted average method is $27.95 and $1.81 respectively
Explanation:
For computing the cost per equivalent unit for transferred-in costs and for conversion costs, first, we have to compute the transferred out units which is shown below:
= Beginning work in process inventory units + units transferred - ending work in process inventory units
= 8,820 units + 30,000 units - 700 units
= 38,120 units
Now for transferred-in costs, the per equivalent cost equal to
= (Accumulated costs + accumulated costs) ÷ (transferred out units + ending work in process inventory units)
= ($315,000 + $770,000) ÷ (38,120 units + 700 units)
= $27.95
For conversion costs , the per equivalent cost equal to
= (Accumulated costs + accumulated costs) ÷ (transferred out units + ending work in process inventory units × completion percentage)
= ($16,000 + $54,000) ÷ (38,120 units + 700 units × 80%)
= $1.81
