Question

"At Trent Company, there are 800 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 800 units is $6,000, what is the per unit conversion cost

Answer 1

Conversion cost per unit =11.25

Step-by-step explanation:

The cost per equivalent unit =

Total conversion cost / Total number of equivalent units

Total number of equivalent unit = Degree of completion × units

= 40%× 800= 320 units.

Total conversion cost = Total value of work in process - cost of materials

= 6,000 - (800× 3)

= 3,600

Conversion cost per unit = 3,600/320=11.25

Conversion cost per unit =11.25