US CMA Part 1 · Chapter 4 · Question 11 of 22
Using the weighted-average method, equivalent units for conversion are 36,400. Conversion costs in beginning work in process were $21,600 and conversion costs incurred this period were $342,400. What is the conversion cost per equivalent unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $10.00
Explanation
The weighted-average method combines beginning WIP costs with current costs: ($21,600 + $342,400) / 36,400 = $364,000 / 36,400 = $10.00 per equivalent unit.
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