Question

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:

Materials cost, 3,000 units	$7,161
Conversion costs, 3,000 units, 40% completed	5,330
Materials added during April, 10,000 units	25,103
Conversion costs during April	34,869
Goods finished during April, 12,000 units	0
April 30 work in process, 1,000 units, 40% completed	0

All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

a.$3.03

b.$3.49

c.$3.11

d.$2.68

Answer 1

The conversion cost per equivalent unit for April is c.$ 3.11

Calculate Conversion Cost Per Unit

	Amount ( $ )
Conversion Cost added during April (A)	$ 34869
Equailent Units(See Note 1) (B)	11200 Units
Conversion Cost Per Unit (A / B)	$ 3.11

Note 1: Calculation of Equivalent Units (FIFO)

	QTY		QTY	Material	Conversion
Opening WIP (100 % , 40 %)	3000	Opening (From)	3000	0 %	Nil	60%	1800
		Current (From)	9000	100%	9000	100%	9000
		Transferred	12000		9000		10800
Added During the Period (Given)	10000	Closing WIP(100 % , 40 %)	1000	100%	1000	40%	400
TOTAL	13000		13000		10000		11200