Question

In March, Lasso Manufacturing had the following unit production costs: materials $10 and conversion costs $8. On March 1, it had zero work in process. During March, Lasso transferred out 20,300 units. As at March 31, 2,050 units that were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process.

Calculate the cost per equivalent unit for Conversion (round your answer to 2 decimals) Please ignore $ sign.

(it is important that this is correct thank you)

Answer 1

			Materials	Conversion
Unit transferred out		20300	20300
Work-in-process, March 31
[2050*100%]		2050
[2050*40%]			820
Equivalent units		22350	21120
			Materials	Conversion
Beginning work-in-process	0	0
Started into Production	10	8
Total Cost		10	8
Divide: Equivalent Units	22350	21120
Unit Cost		0.000447	0.0003788

Thus, the cost per equivalent unit for Conversion is $0.0003788