Question

x company has 655 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. if the unit cost of materials is $3 and the total costs assigned to the 655 units is $4,847, what is the per unit conversion cost?

Answer 1

The per unit conversion cost for x company's ending work in process is approximately $4.40.

Step-by-step explanation:

To find the per unit conversion cost, we need to determine the total conversion costs for the 655 units of ending work in process. We know that the units are 40% complete as to conversion costs, which means that 60% of the conversion costs are yet to be incurred. Let's denote the per unit conversion cost as C:

C = Total conversion costs / Number of units

Given that the total costs assigned to the 655 units is $4,847, we can calculate the total conversion costs:

Total conversion costs = Total costs - Total materials costs

Total conversion costs = $4,847 - ($3 * 655)

Total conversion costs = $4,847 - $1,965 = $2,882

Now we can calculate the per unit conversion cost:

C = $2,882 / 655

C ≈ $4.40