At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for conversion costs?

Question

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:  What is the cost per equivalent unit for conversion costs?

Quizplus · Accepted Answer

To find the cost per equivalent unit for conversion costs, we need to divide the total conversion costs by the total equivalent units of production.

Total conversion costs = $68,250 
Total equivalent units of production = 30,500

Cost per equivalent unit for conversion costs = Total conversion costs / Total equivalent units of production 
= $68,250 / 30,500 
= $2.25

Therefore, the cost per equivalent unit for conversion costs is $2.25. The best choice is C.

At Hodgson Corporation, Direct Materials Are Added at the Beginning