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What was the cost per equivalent unit for conversion costs for the month for Luster Company?

Luster Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

Percentage
Units Complete
Beginning Work in Process Inventory 13,000 40%
Started into production during June 98,000
Ending Work in Process Inventory 11,000 30%

According to the company's records, the conversion cost in beginning work in process inventory was \$39,364 at the beginning of June. Additional conversion costs of \$721,035 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.)
A) \$6.615
B) \$7.358
C) \$7.361
D) \$7.570

Solution Preview

Units to be accounted for
Work in Process, Beginning 13,000
Started into production 98,000
Total Units ...

Solution Summary

The solution explains how to determine the cost per equivalent unit with calculations and the answer.

\$2.19