Question

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,200 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,200. An additional 100,000 units were started into production during the month. There were 33,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $852,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

Multiple Choice

• $11.486

• $12.200

• $7.880

• $9.995

Answer 1

Answer

• Correct Answer = Option #3: $ 7.880

EUP - Weighted Average Method	Units	% Conversion	EUP - Conversion
Units TRANSFERRED	88,200	100%	88,200
Units of ENDING WIP	33,000	70%	23,100
Equivalent Units of Production			111,300
COST per EUP			Conversion
Cost of Beginning WIP			$                                  24,200.00
Cost incurred during the period			$                                852,880.00
Total Costs		Costs	$                                877,080.00
Equivalent units of production		EUP	111,300
Cost per EUP			$                                      7.88032 or $ 7.880 ANSWER