Answer:
The cost per equivalent unit for conversion costs for the month is closest to: A. $8.112
Explanation:
Weighted-average method
Units transferred to the next department = Units in beginning work in process + Units started into production − Units in ending work in process
= 18,000 + 90,000 − 21,000 = 87,000
Conversion
Unit transferred to the next department 87,000
Ending work in process:
Conversion: 21,000 units × 10% 2,100
Equivalent units of production 89,100
Conversion
Cost of beginning work in process inventory 44,820
Costs added during the period 677,970
Total cost (a) 722,790
Equivalent units of production (b) 89,100
Cost per equivalent unit (a) ÷ (b) $8.11
