Answer:
$7.830
Explanation:
Calculation for the cost per equivalent unit for conversion costs for the month
First step is to compute for the Unit transferred out =
Unit transferred out = 21,400+101,000-34,000
Unit transferred out = 88,400
Second step is to compute for the Equivalent unit of conversion
Equivalent unit of conversion = 88,400+(34,000*70%)
Equivalent unit of conversion = 88,400+23,800
Equivalent unit of conversion = 112,200
Last step is to compute for the Cost per equivalent unit of conversion
Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931
Cost per equivalent unit of conversion = 878,580/112,200
Cost per equivalent unit of conversion = $7.830
Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830
