Question

# Richards Corporation uses the weighted-average method of process costing. The following information is available for October...

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: \$37,200.
Costs in beginning Work in Process - Conversion: \$79,700.
Costs incurred in October - Direct Materials: \$646,800.
Costs incurred in October - Conversion: \$919,300.

Calculate the cost per equivalent unit of conversion.

Multiple Choice

Multiple Choice

• \$2.90

• \$3.15

• \$2.76

• \$3.68

• \$3.00

Equivalent units of production under weighted average method for conversion

 Particular Conversion Units completed and transferred out (330000×100%) 330000 Ending inventory (30000×10%) 3000 Total equivalent units of production for conversion 333000

Cost per Equivalent unit

Total cost/Equivalent unit of Conversion

= \$79700+\$919300/333000 = \$3

​​​​​​ALL THE BEST

THANK YOU

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