Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. A production departments beginning inventory cost includes 394900 of conversi

ID: 2445872 • Letter: 1

Question

1. A production departments beginning inventory cost includes 394900 of conversion costs. This department incurs an additional 907500 in conversion costs in the month of march. Equivalent units of production for conversion total for 740000 for march. Calculate the cost per equivalent unit of conversion using the weighted average method.

2. BOGO Inc. has two sequential processing departments has 2000 units in inventory, 70% complete as to materials. During the month, the roasting departement started 18,000 units. At the end of month, the roasting department had 3,000 units in ending inventory, 80% complete as to materials. Cost information is

Beginning work in process inventory 2,170

direct materials added during the month 27,900

Using the FIFO method compute the roasting departments A) equivalent units of production for materials and B) Cost per equivalent unit of production for materials for the month

Explanation / Answer

Answer: To the 1st question:

Particulars Conversion Cost in Beginning inventory cost 394900 Cost incurred during the period 907500 Total 1302400 Equivalent units of Conversion 740000 Cost per equivalent unit of conversion -in$ 1.76