Question

The following information is available for Department X for the month of August: Work in process, August 1: Materials $ 8,480 Conversion costs $15,900 Costs added during August: Materials $29,680 Conversion costs $26,500 Equivalent units of production (weighted average): Materials 4,240 Conversion 5,300 Department X's cost per equivalent unit for conversion using the weighted average method would be:
Department X's cost per equivalent unit for conversion costs using the weighted average method would be:
a) $8.00.
b) $5.00.
c) $3.00.
d) $9.00.

Answer 1

Answer:

a) $8.00

Explanation:

Beginning work in progress, conversion             $15,900

Conversion costs incurred during period             $26,500

Total costs to account for                                     $42,400

Cost per equivalent unit for conversion = $42,400/5,300

                                                                  = $8.00

Therefore, Department X's cost per equivalent unit for conversion costs using the weighted average method would be $8.00