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

To calculate the cost per equivalent unit for conversion, we need to add up the total conversion costs and divide it by the equivalent units of production for the period. 
Conversion costs = $15,120 + $16,905 = $32,025
Equivalent units of production for conversion = 6,750 + (2,250 x 50%) = 7,875
Cost per equivalent unit for conversion = $32,025 / 7,875 = $4.24 
Therefore, the best choice is B.