Coronado Company decided to analyze certain costs for June of the current year. Units started into production equaled 28400 and ending work in process equaled 4000 units. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 30% complete and total conversion costs equaled $117760?

Question

Dereon Reyes

Business

25 March, 19:00

Coronado Company decided to analyze certain costs for June of the current year. Units started into production equaled 28400 and ending work in process equaled 4000 units. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 30% complete and total conversion costs equaled $117760?

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Answers (1)

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Damaris Cohen · Answer 1

Conversion cost per unit = $ 4.03

Explanation:

The equivalent units need to be calculated to find out the conversion cost

With the given dа ta:

Production during the year = 28400 units

Ending work in progress equalled = 4000 units

As per question, it is said that there is no beginning work in process inventory

Completion is 30% and conversion costs is = $117760

Calculation of equivalent units:

Equivalent units =

Therefore, conversion cost per unit = Total conversion cost / equivalent units = 117760/29200 = $4.03