Brewer Corporation Brewer Corporation.has the following information for August:
All material is added at the start of the process and all finished products are transferred out.
Refer to Brewer Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Question

Brewer Corporation Brewer Corporation.has the following information for August:
 All material is added at the start of the process and all finished products are transferred out.
Refer to Brewer Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Quizplus · Accepted Answer

Since FIFO process costing is used, the cost per equivalent unit for conversion is calculated by dividing total conversion costs in August ($46,116) by the equivalent units of production for conversion in August (10,882). 
$46,116/10,882 = $4.24 per equivalent unit for conversion.