Question

Zymosis Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentslong dash​Mixing, ​Refining, and Packaging. On January​ 1, the Refining Department had 4 comma 000 gallons of partially processed product in production. During​ January, 35 comma 000 gallons were transferred in from the Mixing​ Department, and 31 comma 000 gallons were completed and transferred out. At the end of the​ month, there were 8 comma 000 gallons of partially processed product remaining in the Refining Department. See additional details below. Refining​ Department, beginning balance at January 1 ​Quantity: 4 comma 000 units​ (partially processed) Cost $ 15 comma 600 of costs transferred in $ 4 comma 500 of materials cost $ 1 comma 900 of conversion cost 22 comma 000 total account balance Costs added during January Cost of units transferred in $ 222 comma 400 Direct materials cost $ 93 comma 750 Conversion cost $ 48 comma 000 Refining​ Department, ending balance at January 31 ​Quantity: 8 comma 000 units​ (partially processed) Percent complete for materials​ cost: 85​% Percent complete for conversion​ cost: 75​% What was the cost per equivalent unit with respect to conversion costs for the Refining Department in the month of​ January? (Use the weightedminusaverage ​method, and round your calculations to the nearest​ cent.)  

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				4,000.00
Add: Units Started in Process				35,000.00
Total Units to account for:				39,000.00
UNITS TO BE ACCOUNTED FOR:
Units started and completed				31,000.00
Ending Work in Process				8,000.00
Total Units to be accounted for:				39,000.00
Equivalent Units:
			Transferred in Cost		Material Cost		Conversion Cost
			% Completion	Units	% Completion	Units	% Completion	Units
Units started annd completed			100%	31,000.00	100%	31,000.00	100%	31,000.00
Ending Work in Process			100%	8,000.00	85%	6,800.00	75%	6,000.00
Total Equivalent units				39,000.00		37,800.00		37,000.00
TOTAL COST TO ACCOUNT FOR:
			Transferred-in		Material		Conversion
Beginning work in Process			15,600		4500		1,900
Cost Added during May			222,400		93,750		48,000
Total Cost to account for:			238,000		98,250		49,900
Total Cost to account for:							386,150
COST PER EQUIVALENT UNIT:
			Transferred-in		Material		Conversion
Cost added during the period			238,000		98,250		49,900
Equivalent Units			39,000.00		37,800.00		37,000.00
Cost per Equivalent unit			6.10		2.60		1.35
Answer is $ 1.35