Question
Melbourne Cup. Manufacturing Company manufactures its product in the cutting department, and adopts a process costing system. During February, the beginning work in process in
Melbourne Cup. Manufacturing Company manufactures its product in the cutting department, and adopts a process costing system. During February, the beginning work in process in the cutting department was 50% complete as to conversion, and 100% complete as to direct materials. The beginning work-in-process inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete regarding conversion and 100% complete regarding direct material.
Additional information about the cutting department follows:
| Cutting Dept. |
Units in work-in-process, beginning | 20,000 |
Units started this period | 40,000 |
Units completed this period | 50,000 |
Units in work-in-process, ending | 10,000 |
Direct material costs added | $42,000 |
Direct manufacturing labor cost | $18,700 |
Other conversion costs | $21,500 |
- Under the weighted average method, calculate the per-unit conversion cost. (6 marks)
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