1. Department 2 is the second of three sequential processes. All materials are added at the beginning of processing in Department 2. During October, Department 2 reported the following data:

	Number of units	Conversion costs percentage complete
Units started	60,000	-
Completed and transferred	50,000	-
Work in process, October 1	26,000	60%
Work in process, October 31	36,000	20%

Costs for October	Transferred In	Materials	Conversion Costs
Work in process, October 1	$45,000	$25,000	$54,000
Added during the month	81,000	115,000	315,000

The company uses the weighted-average method in its process costing system. To the nearest cent, what is the cost per equivalent unit on the production report for conversion costs?

A) $6.30. B) $5.51. C) $7.38. D) $6.45.

2. Reid Company uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work-in-process inventory were 80% complete with respect to conversion costs. Units in the ending work-in-process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows:

	Units	Conversion costs
Work in process inventory on June 1	15,000	$50,200
Units started into production	145,000
Conversion costs incurred during June		$175,700
Units completed and transferred to the next department during June	130,000

(Appendix 6A) Assuming that the company uses the FIFO cost method, what is the cost per equivalent unit for conversion costs for June, rounded to the nearest cent?

A) $1.35. B) $1.68. C) $1.80. D) $1.40.

3. Ogden Company uses the weighted-average method in its process costing system. Information for the month of January concerning Department A, the first stage of the company's production process, follows:

	Materials	Conversion costs
Work in process, beginning	$8,000	$6,000
Current added during January	$40,000	$32,000
Equivalent units of production	100,000	95,000
Cost per equivalent unit	$0.48	$0.40

Units completed and transferred to the next department	90,000 units
Work in process, ending	10,000 units

Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. What cost would be recorded for the ending work-in-process inventory?

A) $8,800. B) $4,800. C) $3,400. D) $6,800.