Reference no: EM132609842

Kimbeth Manufacturing makes Dust Density Sensors (DDS), a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May:

Units

Beginning work in process inventory 16,000

Started into production during May 100,000

Completed during May 92,000

Ending work in process inventory 24,000

The beginning work-in-process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work-in-process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs.

The costs were as follows:

                                                             Materials                    Conversion

Beginning work-in-process inventory                 $54,560                      $35,560

Costs incurred during May                              $468,000                      $574,040

Question 1: Using the weighted-average method, the cost per equivalent unit of conversion cost for May is closest to which of the following?

Multiple Choice

Option 1: $6.00.

Option 2: $5.83.

Option 3: $6.41.

Option 4: $5.65.