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Luda [366]
3 years ago
5

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in

its Polishing Department: Equivalent units of production—direct materials 110,000 EUP Equivalent units of production—conversion 95,000 EUP Costs in beginning Work in Process—direct materials $ 49,000 Costs in beginning Work in Process—conversion $ 36,000 Costs incurred in February—direct materials $ 414,000 Costs incurred in February—conversion 520,000 The cost per equivalent unit of production for conversion is: $9.26 $4.21 $5.85 $5.05 $4.97
Business
1 answer:
marissa [1.9K]3 years ago
4 0

Answer:

The cost for conversion as per equivalent unit of production is $5.85

Explanation:

Formula for cost of conversion per equivalent unit of production =

Total cost / Equivalent units of production

Equivalent cost of production for conversion is given = 95,000 UNITS

CALCULATING TOTAL COST =

Cost of beginning work in progress + Cost incurred in February ( conversion )

= $36,000 + $ 520,000

= $556,000

Putting the values of total cost and equivalent units of conversion in formula-

= $ 556,000 / 95,000

= $5.85

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