Loll Company uses the weighted-average method in its process costing system. Ope

Question

Loll Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear above:

According to the company's records, the conversion cost in beginning work in process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month.

What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

$8.420

$6.934

$8.530

$8.322

Loll Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear above:

According to the company's records, the conversion cost in beginning work in process inventory was $46,915 at the beginning of June. Additional conversion costs of $825,183 were incurred in the department during the month.

What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

$8.420

$6.934

$8.530

$8.322

Percent Complete with Units Respect to Conversion Beginning work in process inventory …….. 11,000             50% Stared into production during June …….. 98,000 Ending work in process inventory …….. 21,000             80%

Explanation / Answer

1) Equivalent unit of conversion :

Cost per eqivalent unit of conversion = (46915+825183)/104800 = 8.322

So answer is d) $8.322

Whole unit % EUP-conversion Units transferred out 88000 100% 88000 Ending work in process 21000 80% 16800 Total 109000 104800

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