A company starts work on 1000 physical units and completes 75 per cent of conversion activity. The costs are $1500 for conversion and $5000 for direct material. What is the cost per equivalent unit for conversion?
A) $1.00 per unit
B) $1.50 per unit
C) $2.50 per unit
D) $2.00 per unit

Question

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The Answer of A company starts work on 1000 physical units and completes 75 per cent of conversion activity. The costs are $1500 for conversion and $5000 for direct material. What is the cost per equivalent unit for conversion?
A) $1.00 per unit
B) $1.50 per unit
C) $2.50 per unit
D) $2.00 per unit

A Company Starts Work on 1000 Physical Units and Completes