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

Cost of beginning WIP $36,000 + costs incurred in February $520,000 = $556,000
Total cost $556,000/Equivalent units of production 95,000 = $5.85 cost per equivalent unit of production.

Andrews Corporation Uses the Weighted-Average Method of Process Costing