Reference no: EM132899654
Question - AAC Company is reviewing the behavior of its various activities. AAC is considering various costs under process costing system. Its costing system utilizes two cost categories, direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. AAC uses weighted-average costing. Data for the Assembly Department for June 2013 are:
Work in process, beginning inventory 250 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June 800 units
Units sold during June 700 units
Work in process, ending inventory: 150 units
Conversion costs (75% complete)
Costs for June 2013:
Work in process, beginning inventory:
Direct materials $180,000
Conversion costs $270,000
Direct materials costs added during June $1,000,000
Conversion costs added during June $1,000,000
Required - What is the conversion cost per equivalent unit in June?