Question

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 25,000 units were started. At the end of the month all started units were 50% complete with respect to conversion. Direct Materials placed into production had a total cost of $330,000 and the total conversion cost for the month was $428,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. (Round answer to the nearest cent.)

Answer 1

	Material	Conversion	Total
Cost per equivalent unit	13.20	17.12
Annapolis Company
Production Cost Report
Working Note 1:
	Actual Units
Calculation of Physical UNITS:
Units in beginning inventory	-
Units started during the period	25,000
Units to be accounted for	25,000
	Actual Units	Equivalent Units
		Material	Conversion
Units Completed and Transferred	24999	24999	24999
Units in ending inventory	1	1	0.5
Total accounted for	25000	25000	24999.5
Working Note 2:
Costs to be accounted for:
	Total	Material	Conversion
Costs in beginning inventory	-	-	-
Cost added during the year	758,000	330,000	428,000
Total cost to account for	758,000	330,000	428,000
Equivalent Units from above		25000	24999.5
Cost per equivalent unit		13.20	17.12