Answer:
Equivalent units of production for conversion cost is 180
Explanation:
An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Equivalent units of production are the units in production multiplied by the percentage of those units that are complete (100 percent) or those that are in process.
Beginning work in progress (units) = 50
Units added this period = 250
Here we assume that all units are completed and transferred as there is no information on ending work in progress.
Direct material cost in the beginning inventory = $50
Direct material cost added this period = $850
Total direct material cost = 50 + 850 = $900
Conversion cost is given by direct labour plus overhead.
Conversion cost in the beginning inventory = $150 + $1920 = $2070
Conversion cost added this period = $200 + $2770
Total conversion cost = $5040
Equivalent units for direct materials = 300 (100% of 300)
Equivalent units for conversion cost = 60% of 300 = 180
Cost per equivalent unit :
Direct materials = 900/300 = $3
Conversion cost = 5040/180 = $28
