Question

Destra Company uses the weighted average method in its process costing system. The first processing department, the Welding Department, started the month with 10,00 units in its beginning work-in-process inventory that was 30% complete with respect to conversion cost. The conversion cost in this beginning work-in-process inventory was $19,200. An additional 60,000 were started into production the month. There were 19,000 units in the ending work-in-process inventory of the welding department that was 70% with respect to conversion cost. A total of $380,600 in conversion cost was incurred in the department during the month. What would be the cost per equivalent unit for conversion cost for the month? (round off to three decimals places)

Answer 1

Answer:
Particulars	Conversion Units
	Units	% of Completion	Units
Units Started and completed ( 10,000 + 60,000 (-) 19,000 )	51,000	100%	51,000
Ending Inventory	19,000	70%	13,300
Total Equivalent Units of production	70,000		64,300
Total Conversion Costs        = $ 19,200 + $ 380,600	$ 399,800
Total Equivalent Units	64,300
Cost per equivalent unit for conversion cost for the month ( $ 399,800 / 64,300 Units )	$ 6.218 per Unit