Answer:
$0.873
Explanation:
Limber Company
Calculation of cost per equivalent unit for conversion costs for the month:
Units transferred:
Begining Work in process 18,000
Add Units started into production during the month 81,000
Less Ending Work in process (17,000)
Units completed and transferred out during the month 82,000
The Equivalent units of production
Conversion
Transferred to next department 82,000
Add Ending work in process 13,600
( 17,000 units × 80% complete
Equivalent units of production 95,600
Cost per Equivalent Unit
Conversion
Cost of beginning work in process $15,264
Add Cost added during the period 68,208
Total cost $83,472
Equivalent units of production $95,600
Cost per equivalent unit:
Total units/Equivalent units of production
Hence:
$83,472/$95,600
=$0.873
