Question

# Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the...

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,400 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was \$24,700. An additional 101,000 units were started into production during the month. There were 34,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of \$853,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

 Units completed and transferred = 21400+101000-34000= 88400 Units completed and transferred out 88400 Ending work in process inventory 23800 =34000*70% Equivalent unit for conversion costs 112200 Beginning work in process inventory costs 24700 Add: Current period costs 853880 Total costs 878580 Divided by Equivalent unit for conversion costs 112200 Cost per equivalent unit for conversion costs 7.83 (rounded off)

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