Question
Paceheco Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below
Paceheco Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the departments operations in January.
Units | Percent Complete with Respect to Conversion | |
---|---|---|
Beginning work in process inventory | 5,450 | 70% |
Transferred in from the prior department during January | 59,350 | |
Completed and transferred to the next department during January | 57,150 | |
Ending work in process inventory | 7,650 | 40% |
The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $34,908 and a total of $559,604 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:
A) $9.84
B) $8.491
C) $9.736
D) $9.535
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