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A production department’s beginning inventory cost includes $408,000 of conversion costs. This department incurs an additional $1,047,500 in conversion costs in the month of March. Equivalent units of production for conversion total 965,000 for March. Calculate the cost per equivalent unit of conversion using the weighted-average method.

Respuesta :

Answer:

The cost per equivalent unit of conversion using the weighted-average method is $1.51

Explanation:

The computation of the cost per equivalent unit of conversion is shown below:

= Total cost ÷ number of units produced

where,

Total cost = Beginning inventory + additional conversion costs

                = $408,000 + $1,047,500

                = $1,455,500

And, the Equivalent units of production is 965,000 units

Now put these values to the above formula  

So, the cost per unit would equal to

= $1,455,500 ÷ 965,000 units

= $1.51

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