Darden corporation uses the weighted-average method in its process costing system. the first processing department, the welding department, started the month with 21,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. the conversion cost in this beginning work in process inventory was $23,700. an additional 99,000 units were started into production during the month. there were 32,000 units in the ending work in process inventory of the welding department that were 70% complete with respect to conversion costs. a total of $851,880 in conversion costs were incurred in the department during the month. the cost per equivalent unit for conversion costs for the month is closest to:
a. $8.486b. $9.965c. $8.738d. $9.200

cost per equivalent unit of conversion cost = 7.93

close to a 8.486

Explanation:

given data

beginning in = 21000

additional unit started = 99000

inventory = $23700

ending work = 32000

conversion costs =  $851880

to find out

The cost per equivalent unit for conversion costs for the month

solution

we find here first unit transfer out that is express as

unit transfer out = beginning work in + additional unit started - ending work in

unit transfer out = 21000 + 99000 -  32000 = 88000 unit

and

equivalent unit are here express as

equivalent unit = unit transfer out + ending work in × completion %

equivalent unit = 88000 + (32000  × 70 % )

equivalent unit = 110400 units

and  

we know cost per equivalent unit of conversion cost =

here total cost is = 23700 + 851,880 = $875580

cost per equivalent unit of conversion cost =

cost per equivalent unit of conversion cost = 7.93

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.