Please help me solve it. Thx in advance ABC Company uses the weighted-average me
ID: 2350748 • Letter: P
Question
Please help me solve it. Thx in advance
ABC 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 $80,000 at the beginning of June. Additional conversion costs of $400,000 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.)Explanation / Answer
Total cost = 80000 + 400000 = $480,000 Units for finished goods = 12000 + 58000 - 8000 = 62000 units Total equivalence units = 62000 x 10% + 8000 x 30% = 8600 units Cost per equivalence units = 480000/8600 = $55.814 / EU Hope this helps!