Question

Sammy Co. uses process costing to account for the production of popcorn. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 20,000 units for materials and 18,200 units for conversion costs. Beginning inventory consisted of $6,200 in materials and $4,400 in conversion costs. May costs were $47,000 for materials and $32,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 55% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:

Answer 1

$2.00

Step-by-step explanation:

Calculation to determine what The cost per equivalent unit for conversion costs using the weighted average method would be:

Using this formula

Cost per equivalent unit for conversion costs=Beginning inventory for conversion costs +May costs for conversion)/Equivalent units for conversion costs

Let plug in the formula

Cost per equivalent unit for conversion = ($4,400 + $32,000)/18,200

Cost per equivalent unit for conversion =$36,400/18,200

Cost per equivalent unit for conversion = $2.00

Therefore The cost per equivalent unit for conversion costs using the weighted average method would be:$2.00