Byrd Company decided to analyze certain costs for June of the current year.Units started into production equaled 14,000 and ending work in process equaled 2,000 units.With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $35,000?

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are 13,500 (12,000 completed + 500 equivalent units from 2,000 units 25% complete). Conversion cost per unit is $35,000 / 13,500 = $2.59.

Byrd Company Decided to Analyze Certain Costs for June of the Current