Lanjan Corporation uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below:
According to the company's records,the conversion cost in beginning work in process inventory was $92,218 at the beginning of June.Additional conversion costs of $571,618 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)
A) $9.410
B) $7.521
C) $5.954
D) $9.220

Question

Lanjan Corporation uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below:
 According to the company's records,the conversion cost in beginning work in process inventory was $92,218 at the beginning of June.Additional conversion costs of $571,618 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)
A) $9.410 
B) $7.521 
C) $5.954 
D) $9.220

Quizplus · Accepted Answer

Weighted-average method
Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 14,000 + 76,000 - 20,000 = 70,000
 11ea7761_1898_78b9_81a5_152d384d5f72_TB2580_00 11ea7761_1898_78ba_81a5_5db3821fd12f_TB2580_00

Lanjan Corporation Uses the Weighted-Average Method in Its Process Costing