Destin Company uses the weighted average method in its process costing system. T

Question

Destin Company uses the weighted average method in its process costing system. The first processing department, the welding department, started the month with 10,000 units in its beginning work in process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,200. An additional 60,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the welding department that were 70% complete with respect to conversion costs. A total of $383,060 in conversion costs were incurred in the department during the month. that would be the cost per equivalent unit for conversion costs for the month? (round off to three decimal places)

Explanation / Answer

Calculation of Equivalent Units CONVERSION Opening Units 10000 Introduced & completed during the month 51000 (10000+60000-19000) Closing Units 13300 Total Equivalent Units 74300 Calculation of cost per equivalent unit CONVERSION Opening Cost 19200 Cost Incurred during the month 383060 Cost to be accounted for 402260 Total Equivalent Units 74300 Unit Cost 5.41

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