Question

# 9) Zeman Company has the following information available for the month of March:                             &nbsp

9) Zeman Company has the following information available for the month of March:

Units     Transferred-        Direct Conversion

in Costs Materials           Costs

Work-in-process inventory, March 1             240           \$33,600                  0        \$18,000

*Percent complete                                                          100%               0%          62.5%

Transferred-in during March                       400

Completed in March                                   440

Work-in-process inventory, March 31           200

*Percent complete                                                          100%               0%             80%

Costs added in March                                                  \$52,000         \$13,200        \$48,600

The company uses the weighted average cost method. What is the cost per equivalent unit for March for conversion costs?

Solution:

 Computation of Equivalent unit of Production - Weighted average Particulars Physical Units Transferred in cost Material Conversion Unit completed & Transferred out 440 440 440 440 Closing WIP: 200 Prior deparment cost (100%) 200 Material (0%) 0 Conversion (80%) 160 Equivalent units of production 640 640 440 600
 Computation of Cost per equivalent unit of Production - Weighted Average Particulars Transferred in cost Material Conversion Opening WIP \$33,600.00 \$0.00 \$18,000.00 Cost Added during March \$52,000.00 \$13,200.00 \$48,600.00 Total cost to be accounted for \$85,600.00 \$13,200.00 \$66,600.00 Equivalent units of production 640 440 600 Cost per Equivalent unit \$133.75 \$30.00 \$111.00

Cost pee equivalent unit for conversion cost for march = \$111 per unit

#### Earn Coins

Coins can be redeemed for fabulous gifts.