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The following information is available for Department X for the month of August: Work in process, August 1:
Materials $ 8,480
Conversion costs $15,900
Costs added during August:
Materials $29,680
Conversion costs $26,500
Equivalent units of production (weighted average):
Materials 4,240
Conversion 5,300
Department X's cost per equivalent unit for conversion using the weighted average method would be:
a.$8.00.b.$5.00.c.$3.00.d.$9.00.

Respuesta :

Answer:

a. $8.00

Explanation:

The approach we will use to calculate cost per equivalent unit for conversion using weighted average method consists of the following stages:

1st stage: Add beginning (i.e start of August) conversion cost  with conversion costs incurred during August to get total conversion cost

2nd stage: Then divide total conversion cost upon equivalent units of production (units of production for conversion =5300).

Now, lets compute.

Total conversion cost = $15900+$26500

TCC=$42400

Cost per equivalent unit for conversion= $42400÷5300

CPEUC= $8