The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A)$21.76
B)$19.45
C)$23.22
D)$24.38

Question

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for conversion costs, we need to divide the total conversion costs for the period by the equivalent units of production for conversion costs.

Total conversion costs for the period = $46,440 
Equivalent units of production for conversion costs = (9,000 x 100%) + (2,000 x 60%) = 9,800 
Cost per equivalent unit for conversion costs = $46,440 ÷ 9,800 = $4.74

Therefore, the cost per equivalent unit for conversion costs for the first department for the month is $4.74. When we convert this to the total cost per equivalent unit (by adding the direct material cost to it), we get $4.74 + $18.48 = $23.22.

Hence, the best choice is C.

The Cost Per Equivalent Unit for Conversion Costs for the First