Question

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:
Materials cost, 3,000 units	$9,000
Conversion costs, 3,000 units, 80% completed	5,600
Materials added during April, 10,000 units	27,500
Conversion costs during April	32,800
Goods finished during April, 11,500 units	—
April 30, work in process, 1,500 units, 60% completed	—

All direct materials are placed in process at the beginning of the process, and the weighted average method is used to cost inventories.

The conversion cost per equivalent unit (to the nearest cent) for April is

a.$3.84

b.$2.95

c.$3.34

d.$3.10

Answer 1

Correct answer------------(d) $3.10

Working

Reconciliation of Units
A	Opening WIP	3,000
B	Introduced	10,000
C=A+B	TOTAL	13,000
D	Transferred	11,500
E=C-D	Closing WIP	1,500

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	11,500			100%	11,500	100%	11,500
Closing WIP	1,500			100%	1,500	60%	900
Total	13,000			Total	13,000	Total	12,400

.

COST			Conversion cost
Beginning WIP Inventory Cost			$ 5,600
Cost incurred during period			$ 32,800
Total Cost to be accounted for			$ 38,400
Total Equivalent Units			12,400
Cost per Equivalent Units			$                     3.10