Question

# Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory...

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

 Cost Percent Complete Materials costs \$ 10,600 65% Conversion costs \$ 12,800 30%

A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

 Cost Materials costs \$ 142,100 Conversion costs \$ 359,500

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost per equivalent unit for conversion costs for the first department for the month is closest to:

 Answer is \$ 46.16 Explanation: UNITS TO ACCOUNT FOR: Beginning Work in Process units 800 Add: Units Started in Process 8,500 Total Units to account for: 9,300 UNITS TO BE ACCOUNTED FOR: Units completed and transferred out 7400 Ending Work in Process 1,900 Total Units to be accounted for: 9,300 Equivalent Units: UNITS Conversion % Completion Units Units completed and transferred out 7400 100% 7,400 Ending Work in Process 1900 35% 665 Total Equivalent units 9300 8,065 TOTAL COST TO ACCOUNT FOR: Conversion Beginning WIP cost 12800 Cost incurred 3,59,500 Total Cost to account for: 3,72,300 Equivalent Units 8,065 Cost per Equivalent unit 46.16

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