A company uses the weighted average method for inventory costing. Al the start o

Question

A company uses the weighted average method for inventory costing. Al the start of a period the production department had 52,000 units in beginning work in Process inventory which were 34% complete, the department completed and transferred 169,000 units Atthe end of the perlod. 16,000 units were in the ending Work in Process inventory and are 69% complete i The production department had conversion o In the beginning work in process Inventory of $91,000 and total conversion costs added during the penod are $726,650. Compute the conversion cost per equvalent unt O $4.54 O $418 O $475. O $4.39. O $4.60

Explanation / Answer

Total conversion cost: In the beginning 91000 Cost added during the year 726650 Total conversion cost 817650 Equivalent units: Units completed and transferred 169000 Ending work in process inventory (16000*69%) 11040 Equivalent units 180040 Conversion cost per equivalent units=817650/180040=4.54

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