What was the cost per equivalent unit for conversion costs for the month for Luster Company?
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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
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The solution explains how to determine the cost per equivalent unit with calculations and the answer.
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Units to be accounted for
Work in Process, Beginning 13,000
Started into production 98,000
Total Units ...
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