1. Barnett Company uses weighted-average method in its process costing system. Company adds materials at beginning of process in Department M. Conversion costs were 75% complete with respect to 4,000 units in work in process at May 1 and 50% complete with respect to 6,000 units in work in process at May 31. In May, 12,000 units were completed and transferred to next department. An analysis of costs relating to work in process at May 1 and to production activity for May follows:
Total cost per equivalent unit for May was:
i) $5.25
ii) $5.10
iii) $5.12
iv) $5.02
2. Destry Company uses weighted-average method in its process costing system. First processing department, Welding Department, started month with 10,000 units in its beginning work in process inventory which were 30% complete with respect to conversion costs. Conversion cost in this beginning work in process inventory was $19,200. An additional 60,000 units were started into production during the month. There were 19,000 units in ending work in process inventory of Welding Department which were 70% complete with respect to conversion costs. Total of $380,060 in conversion costs were incurred in department during month.
What would be the cost per equivalent unit for conversion costs for month?
i) $6.209
ii) $6.334
iii) $4.811
iv) $6.400