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

The cost per equivalent unit for conversion costs in Department X using the weighted average method is $8.00. This is found by adding the beginning conversion costs to the costs added during the period and dividing by the equivalent units of production for conversion.

Step-by-step explanation:

To determine the cost per equivalent unit for conversion costs using the weighted average method, we first calculate the total conversion costs by adding the conversion costs at the start of the period to those added during the period. Then, we divide this total by the equivalent units of production for conversion.

Total conversion costs = Conversion costs (beginning of period) + Conversion costs (added during period) = $15,900 + $26,500 = $42,400

Next, we divide this total conversion cost by the equivalent units of production for conversion:

Cost per equivalent unit for conversion = Total conversion costs / Equivalent units of conversion = $42,400 / 5,300 = $8.00

Therefore, the correct answer is (a) $8.00.

Answer 2

a) $8.00

Step-by-step 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