Loll Company 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 $46,915 at the beginning of June.Additional conversion costs of $825,183 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)$8.420
B)$6.934
C)$8.530
D)$8.322

Question

Loll Company 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 $46,915 at the beginning of June.Additional conversion costs of $825,183 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)$8.420 
B)$6.934 
C)$8.530 
D)$8.322

Quizplus · Accepted Answer

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 11,000 + 98,000 - 21,000 = 88,000
 11eaa48f_7bdf_1f8e_9e4a_0f1461d21a36_TB2485_00 
 11eaa48f_7bdf_1f8f_9e4a_0f4472e58420_TB2485_00

Loll Company Uses the Weighted-Average Method in Its Process Costing