Question

2.

Wally World uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 12,000 units in its beginning work in process inventory that were 15% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $21,200. An additional 89,000 units were started into production during the month. There were 11,500 units in the ending work in process inventory of the Welding Department that were 68% complete with respect to conversion costs. A total of $796,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is: (round to the nearest cent)

Answer 1

Beginning wip			12,000	completed & transferred			89,500
started during the year			89,000	ending wip			11,500
units to be accounted			101,000	units accounted for			101,000
Equivalent units				%
completed & transferred			89,500	100%	89,500
ending wip			11,500	68%	7820
Equivalent units					97,320
Equivalent cost per unit
beginning wip cost				21,200
added during the year				796,880
total cost				818,080
divide by equivalent units				97,320
cost per unit				8.41	answer