Reference no: EM132973648

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

                                     Cost           Percent Complete

Materials costs                  $ 10,600             65%

Conversion costs                $ 12,800              30%

A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Cost

Materials costs          $ 142,100

Conversion costs           $ 359,500

Problem 1: The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Option 1: $44.58

Option 2: $46.16

Option 3: $48.47

Option 4: $40.03