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	$9,000
Conversion costs, 3,000 units, 80% completed	5,000
Materials added during April, 10,000 units	27,000
Conversion costs during April	30,300
Goods finished during April, 11,500 units	0
April 30 work in process, 1,500 units, 60% completed	0

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.

The conversion cost per equivalent unit (to the nearest cent) for April is

Answer 1

equivalent unit for conversion cost = Units completed+(ending work in process*percent completion)

                                                  = 11500+(1500*60%)

Equivalent unit for conversion cost = 12400 units

Cost per equivalent unit = Total cost/equivalent unit for conversion cost

                                    = (5000+30300)/12400

Cost per equivalent unit = 2.85 per unit