Homework Answers
Answer:
| a | Total conversion cost | $294,800 |
| b | Conversion cost per equivalent unit | $1.60 |
| c | Direct materials cost per equivalent unit | $4.20 |
Calculations:
| Direct labor cost | $238,790 |
| Factory overhead | $56,010 |
| Total conversion cost | $294,800 |
| Total Conversion cost | $294,800 |
| ÷ Equivalent units [173,000 + (15,000 x 3/4)] | 184,250 |
| = Conversion Cost per equivalent unit | $1.60 |
| Cost of direct materials | $789,600 |
| ÷ Equivalent units [173,000+15,000] | 188,000 |
| = Direct materials cost per equivalent unit | $4.20 |
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cost per equivalent unite
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