Chapter 17, Problem 17.20MCQ

Kimberly Manufacturing uses a process-costing system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May, Year 5.

	Units
Beginning work-in-process inventory, May 1	16,000
Started in production during May	100,000
Completed production during May	92,000
Ending work-in-process inventory, May 31	24,000

The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.

Costs pertaining to the month of May are as follows.

• Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240.
• Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the weighted-average method, the equivalent-unit conversion cost for May is:

1. 1. $5.65
2. 2. $5.83
3. 3. $6.00
4. 4. $6.41