Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?
A) $4.19
B) $4.00
C) $3.64
D) $3.83

Question

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?

-Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?
A) $4.19 
B) $4.00 
C) $3.64 
D) $3.83

Quizplus · Accepted Answer

The Answer of  Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?
A) $4.19 
B) $4.00 
C) $3.64 
D) $3.83

Cherrington Company Uses a Process Costing System