Assuming that the company uses the weighted-average cost method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?
A)$2.55
B)$2.53
C)$2.50
D)$2.44

Question

Quizplus · Accepted Answer

To calculate the cost per equivalent unit (EU) for conversion costs, we need to add up the total conversion costs for the month and divide it by the total EU.

Total conversion costs for the month = $371,200
Total EU for the month = 146,000 EU (58,000 from beginning inventory + 88,000 from current period)

Cost per EU = Total conversion costs / Total EU 
Cost per EU = $371,200 / 146,000 EU
Cost per EU ≈ $2.53

Therefore, the cost per EU for conversion costs for the month is $2.53 (rounded to the nearest cent). The best choice is B.

Assuming That the Company Uses the Weighted-Average Cost Method, What