Question

Dorchester Company, on March 1, 2019 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 13,500 units. At the end of the month there were 12,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 70% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP: Direct Material $11,000 Direct Labor 27,000 Factory Overhead 15,000 Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March: (Round & enter final answers to the nearest cent.)

Answer 1

A 1 B С D Conversion Pysical % of Equivalent units completion units 12,000 100% 12,000 1,500 70% 1,050 13,050 2 3 Units completed and transferred 4 Ending work in process inventory 5 Total equivalent units 6 7 8 Direct labor 9 Factory overhead 10 Total conversion costs 11 Total equivalent units 12 Cost per equivalent unit of conversion Conversion $ 27,000 $ 15,000 $ 42,000 13,050 $ 3.22

А 1 2 3 Units completed and transferred 4 Ending work in process inventory 5 Total equivalent units B Conversion Pysical units % of completion Equivalent units 12000 1 =+B3*C3 =13500-12000 0.7 =+B4*C4 =+D3+D4 6 7 Conversion 8 Direct labor 27000 9 Factory overhead 15000 10 Total conversion costs =+B8+B9 11 Total equivalent units =+D5 12 Cost per equivalent unit of conversion =+B10/B11