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Easton Company, on March 1, 2021 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, Easton started into production 10,000 units. At the end of the month there were 8,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 60% complete with respect to conversion.
For the month of March the following costs were incurred and recorded in the WIP:
Direct Material $20,000 Direct Labor 11,000 Factory Overhead 35,000
Problem 1: Easton uses the weighted-average process costing method. Use this information to determine the conversion cost per equivalent unit for the month of March.
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