ACC117 Final Exam (AI × .. Reid Corporation uses a process costing system in whi

Question

ACC117 Final Exam (AI × .. Reid Corporation uses a process costing system in which units go through several departments. In the Cutti ng Department for June, units in the beginning work in process inventory were 80% complete respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data or the de artment or June are as fol ows Units Conversion Cost $50 200 Work In process inventory on June 1 Units started Into production Conversion costs incurred during june Units completed and transferred to the next department during June 130,000 15,000 145,000 $175,700 Assuming that the company uses the weighted-average method, the cost per equivalent unit for conversion costs for June is closest to S164 $1.56 O $174 O $148 Multiple Choice As Type here to 7:33 PM 12/12/2017

Explanation / Answer

Equivalent unit for conversion cost = (130000*100%+30000*25%) = 137500 unit

Total conversion cost = (50200+175700) = 225900

Conversion cost per Equivalent unit = (225900/137500) = 1.64 per unit

so answer is a) 1.64 per unit

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