Luna Manufacturing uses a process costing-system. Luna uses the weighted average method . The following...
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Accounting
Luna Manufacturing uses a process costing-system. Luna uses the weighted average method . The following information pertains to operations for the month of January:
Units
Beginning work-in-process inventory, January 1
14,000
Started in production during January
370,000
Completed production during January
187,000
Ending work-in-process inventory, January 31
197,000
The beginning inventory was 80% complete for materials and 40% complete for conversion costs. The ending inventory was 85% complete for materials and 30% complete for conversion costs. Costs pertaining to the month of January are as follows: Beginning inventory costs are: materials of $152,800 and conversion cost of $165,600. Costs incurred during January are: materials used of $1,849,200 and conversion cost of $2,410,800. What is the conversion cost per equivalent unit for December, rounded to two decimal places?
a.$5.22
b.$9.80
c.$5.65
d.$10.47
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