The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A)$37.11
B)$38.14
C)$40.05
D)$37.92

Question

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for conversion costs for the first department, we add the total conversion costs incurred during the month and divide by the equivalent units of production.

Total conversion costs incurred during the month = $294,165
Equivalent units of production (conversion costs) = 7,720 (3,580 + 4,140)

Cost per equivalent unit for conversion costs = $294,165 ÷ 7,720 = $38.14 (rounded to two decimal places)

Therefore, the closest answer choice is B: $38.14.

The Cost Per Equivalent Unit for Conversion Costs for the First