Question

Units: Beginning Inventory: 34,000 units, 55% complete as to conversion. Units started and completed: 128,000. Units completed and transferred out: 162,000. Ending Inventory: 34,500 units, 35% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $52,000.Costs in beginning Work in Process - Conversion: $57,850. Costs incurred in February - Direct Materials: $296,000.Costs incurred in February - Conversion: $608,150. Calculate the cost per equivalent unit of conversion.a. 196,500.b. 135,725.c. 128,000.d. 174,075.

Answer 1

Answer:

the cost per equivalent unit of conversion is $3.49

Explanation:

The computation of the cost per equivalent unit of conversion is as follows;

= Total conversion cost ÷ equivalent units

where

total conversion cost is $608,150

And, the equivalent units is

= 162,000 units × 100% + 34,500 units × 35%

= 162,000 units + 12,075 units

= 174,075 units

Now the cost per equivalent unit of conversion is

= $608,150 ÷ 174,075 units

= $3.49 per unit

Hence, the cost per equivalent unit of conversion is $3.49

This is the answer but the same is not provided in the given options