Given the following what is the cost per unit for conversion costs
beginning inventory 5000 units
transferred out 6000
ending inventory 2000
30% complete for material
50% for conversion costs
beginning inventory $32,000
started in production: $125000
Calculation of cost per unit of coversion cost | ||||
Particulars | Material | conversion | ||
Unit transfrred to next deptt | 6000 | 6000 | ||
ending WIP | 600 | 1000 | ||
Equivalent unit production | 6600 | 7000 | ||
Calculation of cost per unit for conversion costs | ||||
Particulars | conversion | |||
Cost of WIP beginning | 32000 | |||
cost added in production | 125000 | |||
total cost (A) | 157000 | |||
Equivalent unit of production (B) | 7000 | |||
cost per unit (A)/(B) | 22.43 | |||
question slove as per weighted average method |
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