Andrews Corporation uses the weighted-average method of process costing.The following information is available for February in its Polishing Department: The cost per equivalent unit of production for conversion is:
A)$9.26
B)$4.21
C)$5.85
D)$5.05
E)$4.97

Question

Andrews Corporation uses the weighted-average method of process costing.The following information is available for February in its Polishing Department: The cost per equivalent unit of production for conversion is:
A)$9.26 
B)$4.21 
C)$5.85 
D)$5.05 
E)$4.97

Quizplus · Accepted Answer

To calculate the cost per equivalent unit of production for conversion, we need to add the total conversion costs for the period (i.e. $146,282) to the equivalent units of production for conversion (i.e. 25,010) to get the total cost to be accounted for (i.e. $606,282). 
Then we divide the total cost to be accounted for by the equivalent units of production for conversion to get the cost per equivalent unit of production for conversion. 
($606,282/25,010 = $24.24)
Therefore, the cost per equivalent unit of production for conversion is $5.85.

Andrews Corporation Uses the Weighted-Average Method of Process Costing