Physical units are 40000. Total conversion costs are $158000. There are 1000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?
A) $4.00.
B) $3.95.
C) $7.90.
D) $3.85.

Question

Quizplus · Accepted Answer

Conversion costs per unit = Total conversion costs / (Physical units - Ending inventory units * % complete)= $158000 / (40000 - 1000 * 50%)= $158000 / 39500= $4.00

Physical Units Are 40000