The Made Rite Shoe Corporation uses a process costing system. In the Cutting Department, there was no beginning inventory. 4,000 units were started during the period and by the end of the period, all but 400 units had been completed. The 400 units were 80% complete regarding materials and 40% complete regarding conversion costs. Costs added during the current period include $66,640 for materials and $70,312 for conversion.
-What was the cost per equivalent unit of production for conversion costs, assuming the weighted-average method?
A) $17.00
B) $18.70
C) $17.91
D) $16.91

Question

The Made Rite Shoe Corporation uses a process costing system. In the Cutting Department, there was no beginning inventory. 4,000 units were started during the period and by the end of the period, all but 400 units had been completed. The 400 units were 80% complete regarding materials and 40% complete regarding conversion costs. Costs added during the current period include $66,640 for materials and $70,312 for conversion. 
-What was the cost per equivalent unit of production for conversion costs, assuming the weighted-average method?
A) $17.00
B) $18.70
C) $17.91
D) $16.91

Quizplus · Accepted Answer

The Answer of The Made Rite Shoe Corporation uses a process costing system. In the Cutting Department, there was no beginning inventory. 4,000 units were started during the period and by the end of the period, all but 400 units had been completed. The 400 units were 80% complete regarding materials and 40% complete regarding conversion costs. Costs added during the current period include $66,640 for materials and $70,312 for conversion. 
-What was the cost per equivalent unit of production for conversion costs, assuming the weighted-average method?
A) $17.00
B) $18.70
C) $17.91
D) $16.91

The Made Rite Shoe Corporation Uses a Process Costing System