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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

  1. Under the weighted average method, calculate the per-unit conversion cost. (6 marks)

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