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 18,500 units. At the end of the month there were 12,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 45% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

            Direct Material                      $31,000

            Direct Labor 27,000

            Factory Overhead 20,000

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

Correct answer--------------$3.15

Working

Reconciliation of Units
A	Beginning WIP	-
B	Introduced	18,500
C=A+B	TOTAL	18,500
D	Transferred out	12,000
E=C-D	Ending WIP	6,500

.

Statement of Equivalent Units(Weighted average)
			Material	Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	12,000			100%	12,000	100%	12,000
Ending WIP	6,500			100%	6,500	45%	2,925
Total	18,500			Total	18,500	Total	14,925

.

.

Cost per Equivalent Units (Weighted average)
COST			Conversion
Beginning WIP Inventory Cost (A)			$ 0
Cost incurred during period (B)			$ 47,000
Total Cost to be accounted for (C=A+B)			$ 47,000
Total Equivalent Units(D)			14,925
Cost per Equivalent Units (E=C/D)			$ 3.15