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Question - Pickering Manufacturing Company uses a process costing system. The following information relates to one month's activity in the company's Curing Department:
Units
Conversion Percentage Complete
Beginning WIP inventory
10,000
20%
Units started
21,000
Unite completed and transferred out
26,000
Ending WIP
5,000
80%
The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.
Instructions: Assume that the company uses the weighted-average cost method. Compute the following:
1. The equivalent units of production for conversion for the month.
2. The cost per equivalent unit for conversion for the month.
3. The total cost transferred out during the month.
4. The cost assigned to the ending work-in-process inventory.
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