Question

Dorchester Company, on March 1, 2019 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. On March 1, Dorchester started into production 14,500 units. At the end of the month there were 10,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 50% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

            Direct Material                      $11,000

            Direct Labor 22,000

            Factory Overhead 25,000

Dorchester 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 & enter final answers to the nearest cent.)

Answer 1

• Requirement:
  Cost per equivalent units of conversion
  Answer = $ 3.84
• Working for above answer

EUP - Weighted Average Method	Units	% Conversion	EUP - Conversion
Units TRANSFERRED	10,000	100%	10,000
Units of ENDING WIP	4,500 [14500 – 10000]	50%	2,250
Equivalent Units of Production			12,250
COST per EUP			Conversion
Cost of Beginning WIP			$                                                 -
Cost incurred during the period			$                                  47,000.00
Total Costs		Costs	$                                  47,000.00
Equivalent units of production		EUP	12,250
Cost per EUP			$                                      3.83673 or $ 3.84 Answer