Answer:
b. $4.147
Explanation:
<em>The First Step is to Determine the Total Equivalent Units of Production for Conversion Costs.</em>
Units Completed and Transferred (45,000 × 100%) = 45,000
Units of Closing Work In Process (24,000 × 70% ) = 16,800
Total Equivalent Units of Production = 61,800
<em>The Next Step is to Determine the Total Cost for Conversion during the Period.</em>
Costs in Opening Work In Process = $61,920
Cost Added During the Year = $194,340
Total Cost for Conversion = $256,260
<em>Lastly, we Determine the cost per equivalent unit of Conversion Costs.</em>
Cost per equivalent unit = Total Cost / Total Equivalent Units
= $256,260 / 61,800
= $4.146601942
= $4.147 (three decimal places.)
Conclusion :
Therefore, the cost per equivalent unit for conversion costs for the month is $4.147.
