Question

Kansas 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: UnitsPercent Complete with Respect to Conversion Beginning work-in-process inventory 13,800 50% Started into production during June 105,000 Ending work-in-process inventory 26,600 80% According to the company's records, the conversion cost in beginning work-in-process inventory was $58,115 at the beginning of June. Additional conversion costs of $833,583 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month]

Answer 1

Answer:

$5.439

Explanation:

The computation the cost per equivalent unit for conversion costs is shown below:-

Units transferred = Beginning + Started into production - Ending inventory

= $13,800 + $105,000 + $26,600

= $145,400

Ending Inventory = 26,600 × 80%

= $21,280

Conversion equivalent units = Units transferred + Ending Inventory

= $145,400 + $21,280

= $166,680

Beginning work-in-process inventory = $58,115

Additional conversion costs = $833,583

Total cost = Beginning work-in-process inventory + Additional conversion costs

= $58,115 + $833,583

= $891,698

Conversion per equivalent unit = Total cost ÷ Conversion equivalent units

=  $891,698 ÷ $166,680

= $5.439