Problem:

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $138,200. An additional 95,000 units were started into production during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $434,250 in conversion costs were incurred in the department during the month.

Required:

Question: What would be the cost per equivalent unit for conversion costs for the month?

Note: Provide support for your rationale.