Question

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 124,000 EUP
Equivalent units of production—conversion 107,200 EUP
Costs in beginning Work in Process—direct materials $67,800
Costs in beginning Work in Process—conversion $ 49,800
Costs incurred in February—direct materials $ 572,900
Costs incurred in February—conversion $ 719,500The cost per equivalent unit of production for conversion is:___________.
a. $12.06
b. $6.71
c. $7.18
d. $6.20
e. $5.98

Answer 1

The correct option is C,$7.18

Step-by-step explanation:

The cost per equivalent unit of production for conversion is the costs in beginning work in process—conversion plus costs incurred in February—conversion, divided by the equivalent unit of production-conversion

the costs in beginning work in process—conversion is $49,800

costs incurred in February—conversion is $719,500

equivalent units of production-conversion is 107,200

The cost per equivalent unit of production for conversion = ($49,800+$719,500)/107,200=$7.18