Reference no: EM132319544
Question
Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 80% complete with respect to conversion; the ending work-in-process inventory is 15% complete. The following data pertain to May:
Units Work in process, May 1 16,000
Units started during May 65,000
Units completed and transferred out 73,300
Work in process, May 31 8,000
Total Direct Materials Conversion Costs
Work in process, May 1 $45,250 $17,500 $27,750
Costs incurred during May 237,630 73,000 164,630
Totals $282,880 $90,500 $192,380
Using the weighted-average method of process costing, the cost per unit of conversion activity is:
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