andrews corporation uses the weighted - average method of process costing. the following information is…

andrews corporation uses the weighted - average method of process costing. the following information is available for february in its polishing department: equivalent units of production - direct materials 107,000 eup equivalent units of production - conversion 92,500 eup costs in beginning work in process - direct materials $60,000 costs in beginning work in process - conversion $44,000 costs incurred in february - direct materials $506,200 costs incurred in february - conversion $635,700 the cost per equivalent unit of production for conversion is: multiple choice $12.34 $6.87 $7.35 $6.35 $6.12

andrews corporation uses the weighted - average method of process costing. the following information is available for february in its polishing department: equivalent units of production - direct materials 107,000 eup equivalent units of production - conversion 92,500 eup costs in beginning work in process - direct materials $60,000 costs in beginning work in process - conversion $44,000 costs incurred in february - direct materials $506,200 costs incurred in february - conversion $635,700 the cost per equivalent unit of production for conversion is: multiple choice $12.34 $6.87 $7.35 $6.35 $6.12

Answer

Explanation:

Step1: Calculate total conversion costs

Total conversion costs = Costs in beginning Work in Process - conversion+Costs incurred in February - conversion Total conversion costs = $44,000 + 635,700=$679,700$

Step2: Calculate cost per equivalent - unit of production for conversion

Cost per equivalent - unit of production for conversion=$\frac{\text{Total conversion costs}}{\text{Equivalent units of production - conversion}}$ Cost per equivalent - unit of production for conversion=$\frac{679,700}{92,500}\approx$7.35$

Answer:

$7.35$ (corresponding to the option with value $$7.35$)