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Information about units processed and processing costs incurred during a recent month in the Refining Department...

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: Number of Units Conversion costs percentage complete Beginning work in process inventory 11,000 35% Units started into production 120,000 - Units completed and transferred out 114,000 - Ending work in process inventory 17,000 30% The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs. Assuming that the company uses the FIFO method, what is the cost per equivalent unit for conversion costs for the month in the refining Department, rounded to the nearest cent?

Question 15 options: $2.54. $2.44. $2.59. $2.52.

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Answer #1
Statement of cost per equivalent production
Element of costs Units Costs Cost/eq. units
Conversion 115250 $      290,000.00 $                  2.52

Workings:

Statement of equivalent production
Conversion
Particulars Units Particulars Units % Units
Opening WIP 11000 Transfer to next process:
Material Introduced 120000 From O/p WIP 11000 65% 7150
From Current Intro 103000 100% 103000
Closing WIP 17000 30% 5100
131000 131000 115250
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