Question

Assuming equivalent units of conversion costs is 7,000 units (note this is not the answer for the above question) at the end of February. Assume Injection Molding Inc. uses the First In First Out (FIFO) process costing method, what is the conversion cost per equivalent unit (rounded to the nearest dollar)

Answer 1

$157 per equivalent unit

Step-by-step explanation:

Note: The full question is attached as picture below

Conversion cost per equivalent unit = Conversion costs added during February / Equivalent units of conversion costs

Conversion cost per equivalent unit = $1,100,000 / 7000 units

Conversion cost per equivalent unit = $157.14286

Conversion cost per equivalent unit = $157 per equivalent unit