Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,200 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 7,500 65% Conversion costs $ 8,600 45% A total of 10,100 units were started and 7,700 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 $ 127,300 Conversion costs $ 208,800 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department

$23.35

Explanation:

Units completed and transferred out = 7,700

WIP, Ending = 2,200 + 10,100 - 7,700 = 4,600. Conversion = 4,600*35% = 1,610

Equivalent unit of production = Units completed and transferred out + Conversion

Equivalent unit of production = 7,700 + 1,610

Equivalent unit of production = 9,310

Cost per equivalent unit = $8,600 + $208,800 / 9,310 units

Cost per equivalent unit = $217,400 / 9,310 units

Cost per equivalent unit = $23.351235231

Cost per equivalent unit = $23.35

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer; closing the loop;