Asked by Brycen Cluster on Jun 01, 2024
Verified
Andrews Corporation uses the weighted-average method of process costing.The following information is available for February in its Polishing Department: The cost per equivalent unit of production for conversion is:
A) $9.26
B) $4.21
C) $5.85
D) $5.05
E) $4.97
Equivalent Unit
A measure used in cost accounting to express the amount of work done on units of production during a period, considering partially completed units.
Conversion Costs
The cost required to convert raw materials into finished products, typically including labor and overhead expenses.
- Determine and explain the price per equivalent unit.
Verified Answer
TJ
Taylor JabczenskiJun 02, 2024
Final Answer :
C
Explanation :
To calculate the cost per equivalent unit of production for conversion, we need to add the total conversion costs for the period (i.e. $146,282) to the equivalent units of production for conversion (i.e. 25,010) to get the total cost to be accounted for (i.e. $606,282).
Then we divide the total cost to be accounted for by the equivalent units of production for conversion to get the cost per equivalent unit of production for conversion.
($606,282/25,010 = $24.24)
Therefore, the cost per equivalent unit of production for conversion is $5.85.
Then we divide the total cost to be accounted for by the equivalent units of production for conversion to get the cost per equivalent unit of production for conversion.
($606,282/25,010 = $24.24)
Therefore, the cost per equivalent unit of production for conversion is $5.85.
Learning Objectives
- Determine and explain the price per equivalent unit.
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