Kamin Company's Mixing Department had a beginning inventory of 4,000 units, which had accumulated conversion costs of $55,000. During the period, the Mixing Department accumulated conversion costs of $92,000 and started 8,000 new units. Ending inventory was 2,500 units which were 40% complete with respect to conversion costs. Kamin uses the average cost method to cost inventories.Calculate the cost per equivalent unit for conversion costs in the Mixing Department.

Question

Kamin Company's Mixing Department had a beginning inventory of 4,000 units, which had accumulated conversion costs of $55,000. During the period, the Mixing Department accumulated conversion costs of $92,000 and started 8,000 new units. Ending inventory was 2,500 units which were 40% complete with respect to conversion costs. Kamin uses the average cost method to cost inventories.​Calculate the cost per equivalent unit for conversion costs in the Mixing Department.

Zybrea Knight · Accepted Answer

Final Answer :

Units Transferred Out = 4,000 + 8,000 - 2,500 = 9,500 unitsEquivalent Units = 9,500 +
(2,500 × 40%) = 10,500Cost per equivalent unit for conversion costs =
($55,000 + $92,000)/10,500 = $14

Definitions

Learning Objectives

Learning Objectives

Related questions