The Assembly Department of Smart Computers incurred $250,000 in direct materials and $75,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,000 and 800, respectively. The cost per equivalent unit of production (EUP)for conversion costs is:

Question

Quizplus · Accepted Answer

To find the cost per equivalent unit of production (EUP) for conversion costs, we divide the total conversion costs by the equivalent units of production for conversion costs. 
Cost per EUP for conversion costs = Total conversion costs / Equivalent units of production for conversion costs 
Cost per EUP for conversion costs = $75,000 / 800 EUPs 
Cost per EUP for conversion costs = $93.75 per EUP

The Assembly Department of Smart Computers Incurred $250,000 in Direct