Shelley Company uses the weighted average method in its process costing system.

Question

Shelley Company uses the weighted average method in its process costing system. Listed below is cost data for the current month:

Materials costs

Conversion costs

Beginning work-in-process inventory

$4,000

$9,000

Costs incurred in the current month

$40,000

$60,000

There are 10,000 equivalent units for materials and 6,000 equivalent units for conversion.

The cost per equivalent unit for conversion is:

Shelley Company uses the weighted average method in its process costing system. Listed below is cost data for the current month:

Materials costs

Conversion costs

Beginning work-in-process inventory

$4,000

$9,000

Costs incurred in the current month

$40,000

$60,000

There are 10,000 equivalent units for materials and 6,000 equivalent units for conversion.

The cost per equivalent unit for conversion is:

Explanation / Answer

The cost per equivalent unit for conversion is:=materials $44,000/10,000 units +conversion costs $69,000/6,000 units=$15.9 per unit

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