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Part 1

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses

weightedaverage

costing.

Data for the Assembly Department for June 2020 are:
Work in process, beginning inventory	320 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started in June	970 units
Work in process, ending inventory:	150 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for June 2020:
Work in process, beginning inventory:
Direct materials	90500
Conversion costs	138000
Direct materials costs added during June	603000
Conversion costs added during June	401000

What is the conversion cost per equivalent unit in June?

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Part 1

A.$ 427.78

B.$ 403.54

C.$ 870.33

D.$ 546.06