Bramble Company decided to analyze certain costs for June of the current year. Units started into production equaled 13400 and ending work in process equaled 2000 units. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 35% complete, total conversion costs equaled $45980, and conversion costs were applied uniformly throughout production?
Equivalent Units | ||
Physical Units | Conversion | |
Units to be accounted for | ||
Beginning WIP | 0 | |
Units started into production | 13400 | |
Total Units to be accounted for | 13400 | |
Units accounted for | ||
Units started and completed | 11400 | 11400 |
Ending WIP - 35% | 2000 | 700 |
Total units accounted for | 13400 | 12100 |
Cost incurred | $45,980 | |
÷ equivalent units | ÷ 12100 | |
Cost per equivalent units | $ 3.80 |
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