Andrews Corporation uses the weighted-average method of process costing. The fol

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:

Multiple Choice

a. $12.06

b. $6.71

c. $7.18

d. $6.20

e. $5.98

Equivalent units of production—direct materials 124,000 EUP Equivalent units of production—conversion 107,200 EUP Costs in beginning Work in Process—direct materials $ 67,800 Costs in beginning Work in Process—conversion $ 49,800 Costs incurred in February—direct materials $ 572,900 Costs incurred in February—conversion $ 719,500

Explanation / Answer

c. $7.18

Cost of beginning WIP $49,800 + costs incurred in February $719,500 = Total cost $769,300

Total cost / Equivalent units of production = Cost per equivalent unit of production

$769,300 / 107,200 = $7.18

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