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

 
                                                           
                                                                         = $4.2