Question

he Assembly Department of​ ByteSize, Inc., manufacturer of​ computers, incurred $300,000 in direct material costs and $90,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,500 and 800​, respectively. The weightedminus−average method is used. The cost per equivalent unit of production​ (EUP) for conversion costs is​ ________. (Round your answer to the nearest​ cent.)

Answer 1

$112 per EUP

Step-by-step explanation:

The computation of the cost per equivalent unit of production​ (EUP) for conversion costs is shown below:

= Conversion costs ÷ equivalent units of production for conversion costs

= $90,000 ÷ 800 units

= $112 per EUP

Simply we divide the conversion cost by the equivalent units of production for conversion costs so that the EUP can come.