Question

Paceheco Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department’s operations in January.

	Units				Percent Complete with Respect to Conversion
Beginning work in process inventory		5,150				70	%
Transferred in from the prior department during January		59,050
Completed and transferred to the next department during January		56,850
Ending work in process inventory		7,350				40	%

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $34,608 and a total of $559,304 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

Answer 1