Richards Corporation uses the weighted-average method of process costing.
The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 95,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 280,000. Units completed and transferred out: 375,000. Ending Inventory: 37,500 units, 30% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $52,200. Costs in beginning Work in Process – Conversion: $94,700. Costs incurred in October – Direct Materials: $802,800. Costs incurred in October – Conversion: $1,091,050. Calculate the cost per equivalent unit of conversion.
Multiple Choice
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$3.13
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$3.40
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$3.03
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$2.95
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$2.94
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