Question: A1 Co. uses the weighted-average method for process costing. The Mixing Department had 36,000 units in its beginning WIP inventory that were 40% complete with
A1 Co. uses the weighted-average method for process costing. The Mixing Department had 36,000 units in its beginning WIP inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning WIP inventory was $62,820. An additional 108,000 units were started by the department into production during the month. There were 39,000 units in the ending WIP inventory of the department that were 10% complete with respect to conversion costs. A total of $857,970 in conversion costs were incurred in the department during the month.
What would be the departments cost per equivalent unit for conversion costs for the month?
A.$8.46
B.$8.76
C.$7.94
D.$5.70
E.$6.87
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