Question

The Assembly Department of Protocol, Inc., manufacturer of computers, incurred 280,000 in direct materials costs and 70,000 in conversion costs. the equivalent units of production for direct materials and conversion costs are 1,500 and 600, respectively. the cost per equivalent unit of production for conversion costs is ______.

a) 116.67
b) 46.67
c) 466.67
d) 186.67

Answer 1

a) 116.67

Step-by-step explanation:

Conversion Cost per Unit = Conversion cost ÷ Units produced for

conversion cost

Conversion Cost /unit = 70000/600

Conversion Cost / unit = 116.67