Question

EB4.

LO 5.3There were 1,500 units in ending work in process inventory that were 100% complete with regard to material and 60% complete with regard to conversion costs. Ending work in process inventory had a cost of $7,200 and a per-unit material cost of $3. What was the conversion cost per unit using the weighted-average method?

Answer 1

The conversion cost per unit is $8.

Step-by-step explanation:

This question required us to calculate conversion cost per unit using the weighted-average method. In weighted-average method opening units lost its identity. Detail calculation is given below.

Total Material Cost = 3 * 1500 = $ 4,500

Conversion Cost per unit = 7200/(1500 * 60%) = 8 dollars per unit