Answer:
the cost per equivalent unit for conversion costs for the month is $ 6.256 (round off to three decimal places)
Explanation:
The Concept of Equivalent units measures the number of units of output in terms of percentage completion of a certain input element.
In this question we are required to find the cost per equivalent unit for conversion costs.
Step 1 Find the Total conversion costs for the period.
Conversion cost in this beginning work in process inventory $19,200
Conversion costs incurred in the during the month $383,060
Total conversion costs for the period $402,260
Step 2 Find the Total Equivalent units
Hint : First find the Units Completed
Units Completed = 10000+6000-19000
= 51,000
<u> Total Equivalent units</u>
Units Completed ( 51,000 × 100 %) = 51,000
Closing Work In progress ( 19,000 × 70 %) =13,300
Total Equivalent units =64,300
Step 3 Find cost per equivalent unit for conversion costs
cost per equivalent unit = Total conversion costs / Total Equivalent units
= $402,260 / 64,300
= $ 6.256 (round off to three decimal places)
