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Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

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Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

Unit % of completion

Beginning working in progress 18,000 80%

Started into production 81,000

Ending working progress 17,000 * 80%

According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Answer:

cost per equivalent unit for conversion costs = $0.873

Step-by-step explanation:

Completed units= opening inventory + started unit - closing inventory

= 18000 + 81,000 - 17,000 = 82 ,000 units

Item units Equivalent unit

Completed units 82,000 100% × 82,000 = 82,000

Production 17,000 80% ×17,000 = 13600

Total equivalent unit 95,600

Cost per equivalent unit= total conversion cost / total equivalent units

= ($15,264 + $68,208)/95,600 units = $0.873

cost per equivalent unit for conversion costs=$0.873