Using the weighted-average method,the cost per equivalent unit of conversion cost for May is ? (Round your answers to the nearest whole cent)
A) $5.14.
B) $5.68.
C) $6.00.
D) $6.41.

Question

Quizplus · Accepted Answer

The weighted-average method assigns the cost of conversion to the units that were started and completed during the period, plus the cost of conversion incurred on the units that were in ending work in process. The cost of conversion per equivalent unit is calculated by dividing the total cost of conversion incurred during the period by the total number of equivalent units of conversion. In May, the total cost of conversion incurred was $102,800, and the total number of equivalent units of conversion was 19,800. Therefore, the cost of conversion per equivalent unit is $102,800 ÷ 19,800 = $5.14.

Using the Weighted-Average Method,the Cost Per Equivalent Unit of Conversion