Use the following information to answer the following Questions
Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May:

-Using the weighted-average method of process costing, the cost per unit of conversion activity is:
A) $2.50.
B) $2.53.
C) $2.70.
D) $2.76.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May:

-Using the weighted-average method of process costing, the cost per unit of conversion activity is:
A) $2.50. 
B) $2.53. 
C) $2.70. 
D) $2.76. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The weighted-average method combines costs and outputs from the current and previous periods to calculate the cost per unit. Given the options, $2.70 is the correct cost per unit for conversion activity.

Use the Following Information to Answer the Following Questions