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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.)

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Answer:

$6.892

Explanation:

Remember, the Conversion costs is implies a combination of direct labor costs and manufacturing overhead costs.

Therefore, from the question it is inferred that;

24,000 (Beginning of June work in process)

86,000 (Started into production during June)

19,000 (Ending work in process inventory)

91,000 (TransOut)

3800 (Equivalent End)

The Equivalent units for period = 94,800

$585,324 (Conversion cost for period for month)

$68,064 (Beginning Conversion cost)

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$653,388 / 94,800 = $6.892 cost per equivalent unit

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