Question

Checky Required information The Foundational 15 [LO4-1, LO4-2, L04-3, L04-4, L04-5) The following information applies to the questions dispayed below Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted average method of process costing to Work in Process T account for the Mixing Department for June follows all forthcoming questions pertanto June in Processing Department 28.00 Completed and transferred to Fished Goods The June 1 work in process inventory consisted of 5.000 units with $16.000 in materials cost and $12.000 in conversion cost The June I work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June 37500 units were started into production. The June 30 work in process inventory consisted of 8.000 units that were 100% complete with respect to materials and 40% complete with respect to conversion Foundational 4.9 9. What is the cost per equivalent unit for conversion (Round your answ

Answer 1

Equivalent units for conversion cost = 5,000 + 37,500 - 8,000 + (8,000 X 40%)

= 37,700 units

Total conversion cost = $12,000 + $79,500 + $97,000 = $188,500

Cost per equivalente unit = $188,500 / 37,700 = $5 per unit