A shampoo manufacturer offers the following information:

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31,the cost per equivalent unit for conversion costs would be closest to

Question

A shampoo manufacturer offers the following information:

The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31,the cost per equivalent unit for conversion costs would be closest to

Quizplus · Accepted Answer

C)Conversion
Completed 19,200
End Inv.7000 × 60% @ 40% 2,560
Total units 21,760
Costs 913,920 (585,000 + 328,920)
Unit costs $42.00

A Shampoo Manufacturer Offers the Following Information