Pesco Processing uses weighted-average process-costing. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Pesco started 30,000 units into production and completed 25,000 units. Manufacturing costs follow. Beginning work in process: Materials, $60,000; conversion cost, $150,000 Current costs: Materials, $180,000; conversion cost, $480,000 Pesco's equivalent-unit cost for conversion cost is:

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Chapter1: Financial Statements And Business Decisions
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Pesco Processing uses weighted-average process-costing. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Pesco started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.

Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000

Pesco's equivalent-unit cost for conversion cost is:

Select one:
a.

$13.71.

b.

$18.00.

c.

$21.00.

d.

$25.20.

e.

None of the answers is correct.

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