Edward Company uses the FIFO method in its process costingsystem. The first processing department, the Welding Department,started the month with 10,000 units in its beginning work inprocess inventory that were 40% complete with respect to conversioncosts. The conversion costin this beginning work in process inventory was $12,800. Anadditional 94,000 units were started into production during themonth. There were 14,000 units in the ending work in processinventory of the Welding Department that were 80% complete withrespect to conversion costs. A total of $286,740 in conversioncosts were incurred in the department during the month. What wouldbe the cost per equivalent unit for conversion costs?
A)2.88
B) 3.2
C) 2.95
I know answer is C. I know how to get it. But what is that$12,800 in beginning work in process???
That got me little confused... Because that $12,800 hasnothing to do with getting the cost per equivalent unit. I amthinking $12,800 is how much those 10,000 units actually cost??
Edward Company uses the FIFO method in its process costingsystem. The first processing department, the Welding Department,started the month with 10,000 units in its beginning work inprocess inventory that were 40% complete with respect to conversioncosts. The conversion costin this beginning work in process inventory was $12,800. Anadditional 94,000 units were started into production during themonth. There were 14,000 units in the ending work in processinventory of the Welding Department that were 80% complete withrespect to conversion costs. A total of $286,740 in conversioncosts were incurred in the department during the month. What wouldbe the cost per equivalent unit for conversion costs?
A)2.88
B) 3.2
C) 2.95
I know answer is C. I know how to get it. But what is that$12,800 in beginning work in process???
That got me little confused... Because that $12,800 hasnothing to do with getting the cost per equivalent unit. I amthinking $12,800 is how much those 10,000 units actually cost??
Related questions
Baker Corporation uses the weighted-average method in itsprocess costing system. The Assembly Department started the monthwith 9,400 units in its beginning work in process inventory thatwere 80% complete with respect to conversion costs. An additional96,000 units were transferred in from the prior department duringthe month to begin processing in the Assembly Department. Therewere 14,500 units in the ending work in process inventory of theAssembly Department that were 80% complete with respect toconversion costs. What were the equivalent units for conversioncosts in the Assembly Department for the month? |
94,980
102,500
101,100
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Baker Corporation uses the weighted-average method in itsprocess costing system. The Assembly Department started the monthwith 14,000 units in its beginning work in process inventory thatwere 90% complete with respect to conversion costs. An additional96,000 units were transferred in from the prior department duringthe month to begin processing in the Assembly Department. Therewere 21,000 units in the ending work in process inventory of theAssembly Department that were 90% complete with respect toconversion costs. What were the equivalent units for conversioncosts in the Assembly Department for the month? |
