If the costs for direct labour, factory overhead and direct material were $873,600,
$109,200 and $53,200 respectively for 28,000 equivalent units of production, the conversion cost per equivalent unit was $11.60.

Question

Quizplus · Accepted Answer

The conversion cost is calculated by adding direct labor and factory overhead costs, which equals $873,600 + $109,200 = $982,800. To find the conversion cost per equivalent unit, divide this sum by the number of equivalent units: $982,800 / 28,000 units = $35.10 per equivalent unit.

If the Costs for Direct Labour, Factory Overhead and Direct