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

Question

Nebraska Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 33,000 units in its beginning work-in-process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $59,820. An additional 105,000 units were started into production during the month. There were 36,000 units in the ending work-in-process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $827,970 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round to three decimal places.)

$8.130.

$8.696.

$7.885.

$5.584.

Explanation / Answer

Beginning work in process 33,000 Completed & transferred 102,000 Started during the year 105,000 Ending work in process 36,000 units to be accounted 138,000 units accounted for 138,000 Equivalent units units % CC completed & transferred 102,000 100% 102,000 Ending work in process 36,000 20% 7200 Equivalent units 138,000 109,200 Cost per unit beginning work in process 59,820 cost added during the year 827,970 total cost 887,790 Equivalent units 109,200 Cost per unit 8.129945 Answer $8.13

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