Answer:
$5.70
Explanation:
The calculation of conversion costs for the month is given below:-
Units started to completed during the period = Units completed during the month - Units started during the month
= $104,000 - $16,400
= $87,600
So, to complete the started work in progress :-
The Conversion = $16,400 × (100% - 20%)
= $13,120
Units started to completed during the period $87,600
And, the ending work in progress
For Conversion = $13,400 × 30%
= $4,020
Therefore, the Equivalent production of units is
= $87,600 + $13,120 + $4,020
= $104,740
So, The cost of per per equivalent unit is
= Cost added during the period ÷ Equivalent units of production
= $597,123 ÷ $104,740
= $5.70
