Question

6. Larner Corporation uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:



According to the company's records, the conversion cost in beginning work in process inventory was $68,064 at the beginning of June. Additional conversion costs of $585,324 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.)

Percent Complete with Respect to Conversion 40% Beginning work in process inventory ....... Started into production during June......... Ending work in process inventory........... Units 24,000 86,000 19,000 20%

_____________________________________________________________________________________________

7. Harker Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $29,440. An additional 59,000 units were started into production during the month and 61,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

Answer 1

6) Equivalent unit of conversion = 91000+(19000*20%) = 94800

Cost per equivalent unit of conversion cost = (68064+585324)/94800 = 6.892

7) Equivalent unit of conversion = 61000+(14000*10%) = 62400

Cost per equivalent unit of conversion = (29440+246400)/62400 = 4.421