Under the weighted-average method, how would you calculate the cost per equivalent units with regards to conversion costs?
A) conversion costs for work done in the current period/units completed and transferred out in the current period
B) (total conversion costs in beginning work in process)/(units completed and transferred out during the period + equivalent units in ending inventory)
C) (total conversion costs in beginning work in process + conversion cost for work done in the current period)/(units completed and transferred out during the period + equivalent units in ending inventory)
D) (total direct labor costs in beginning work in process + conversion cost for work done in the current period)/(units completed and transferred out during the period + equivalent units in ending inventory)

Question

Quizplus · Accepted Answer

The cost per equivalent unit with regards to conversion costs is calculated by adding the total conversion costs in the beginning work in process with the conversion cost for work done in the current period, and dividing by the total equivalent units in both the units completed and transferred out during the period and the equivalent units in ending inventory. Therefore, choice C is the correct answer.

Under the Weighted-Average Method, How Would You Calculate the Cost