Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing.
Data for the Assembly Department for June 2017 are:
| Work in process, beginning inventory | 390 units |
Direct materials (100% complete)
Conversion costs (50% complete)
| Units started during June | 1040 units |
| Work in process, ending inventory: | 200 units |
Direct materials (100% complete)
Conversion costs (85% complete)
Costs for June 2017:
Work in process, beginning inventory:
| Direct materials costs added during June | $603,000 |
| Conversion costs added during June | $403,500 |
What is the conversion cost per equivalent unit in June?
◦ $482.99
◦ $659.27
◦ $387.14
◦ $354.51
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