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

Question

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

Quizplus · Accepted Answer

To calculate the cost per equivalent unit for conversion, we need to divide the total conversion costs by the equivalent units of production. 
Total Conversion Costs for May = $49,840
Equivalent Units of Production for Conversion in May = 12,860
Cost per Equivalent Unit of Conversion = Total Conversion Costs / Equivalent Units of Production for Conversion
Cost per Equivalent Unit of Conversion = $49,840 / 12,860 = $3.87
Therefore, the correct answer is B, $3.87.