Larner Company Uses the Weighted-Average Method in Its Process Costing

question 2

Multiple Choice

Larner Company uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below:
$$\begin{array} { | l | r | r | } \hline & \text { Units } & \text { Percentage complet } \\\hline \begin{array} { l } \text { Beginning work in process } \\\text { inventory }\end{array} & 24,000 & 40 \% \\\hline \begin{array} { l } \text { Started into production } \\\text { during June }\end{array} & 86,000 & \\\hline \begin{array} { l } \text { Ending work in process } \\\text { inventory }\end{array} & 19,000 & 20 \% \\\hline\end{array}$$
According to the company's records,the conversion cost in beginning work-in-process inventory was $68,064 at the beginning of June.Additional conversion costs of $585,324 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

• A) $5.575.
• B) $6.174.
• C) $6.892.
• D) $7.090.

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