kenney co. uses process costing to account for the production of canned energy d

Question

kenney co. uses process costing to account for the production of canned energy drinks. direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. equivalent units have beeen calculated to be 19.200 units for materials and 16000 units for conversion costs. beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs. April costs were $57600 for materials and $64000 for conversion costs. Ending inventory still in process was 6400 units (100% complete for materials, 50% for conversion). the cost per equivalent unit for conversion costs using the weighted average month would be a) $4.00 b) $4.40 c) $1.10 d) $8.70

Explanation / Answer

Cost per equivalent unit for conversion costs=(64000+6400)/16000= $4.4 Option B is correct

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