At Trapeze Corporation, direct materials are added at the beginning of the proce

Question

At Trapeze Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

WIP beginning (50% for conversion) 29,200 units

Units started 125,500 units

Units completed and transferred out 114,700 units

WIP ending (60% for conversion) 40,000 units

Beginning WIP direct materials $35,000

Beginning WIP conversion costs $ 24,500

Costs of materials added $384,100

Costs of conversion added $ 268,125

What is the cost per equivalent unit for conversion costs? (Round your final answer to the nearest cent.)

Explanation / Answer

Equivalent unit of conversion = 114700+(40000*60%) = 138700 Units

Cost per equivalent unit of conversion = (24500+268125)/138700 = $2.11 per equivalent unit

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