Question

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 1

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