Answer:
The cost per equivalent unit of conversion is $2.56
Explanation:
Beginning inventory = 92,000 units
Units started and completed = 262,000 units
Units completed and transferred out: 354,000 units
Ending Inventory: 36,000 units
Equivalent unit of materials = (92,000 × 20%) + 262,000 + (36,000 × 30%)
= 291,200 units
Direct materials = $744,600
Cost per equivalent unit of materials = Direct materials ÷ Equivalent unit of materials
=$744,600 ÷ 291,200 = $2.56
