Answer: Option (C) is correct.
Explanation:
Units Started into the production = 14,000 Units
Ending work in process = 2,000 units
Transferred Units = Units in the starting - Ending work in process
= 14,000 units - 2,000 Units
= 12,000 Units
Equivalent units = Transferred units + Ending work in process in units × % of Completion
= 12,000 Units + 2,000 Units × 25% complete
= 12,000 + 2,000 × 0.25
= 12,000 units + 500 units
= 12,500 units
Total Conversion cost = $52,500
![Conversion\ cost\ per\ Equivalent\ unit=\frac{Total\ Conversion\ cost}{Equivalent\ Units}](https://tex.z-dn.net/?f=Conversion%5C%20cost%5C%20per%5C%20Equivalent%5C%20unit%3D%5Cfrac%7BTotal%5C%20Conversion%5C%20cost%7D%7BEquivalent%5C%20Units%7D)
= $4.2