Consider the following information from the records of Bennington Corporation. The company uses the weighted-average method. Brining DepartmentMaterials Conversion Equivalent units of production 1,670 1,660 Costs of beginning work in process$250 $350 Costs added during the period$2,255 $3,385 Knowledge Check 01 When computing the cost per equivalent unit for conversion, what is the total cost that will be included in the numerator of that calculation

Equivalent units are used to apportion cost between completed units and work in progress. They represent notional whole units which represent incomplete work.

Valuation of inventory suing weighted average method

Under this method, no distinction is made between opening inventory and units newly introduced in the current period when accounting for completed units.

Completed units are assumed to be items for which work were started and completed this period, i.e 100% work is assumed to be done in the current period.

Calculation of conversion cost

Cost per E.U = (Cost b/f forward + Costs current period)/ Total E.Us

Total conversion cost = =$3,385 + 350 = $3735

Conversion cost to be included in the numerator=$3735

Conversion cost per E.U ( this not part of question requirement

= ($3,385 + $ 350)/1,660 E.Us

= $2.25

=