Conversion cost per unit = $ 4.03
Explanation:
The equivalent units need to be calculated to find out the conversion cost
With the given data:
Production during the year = 28400 units
Ending work in progress equalled = 4000 units
As per question, it is said that there is no beginning work in process inventory
Completion is 30% and conversion costs is = $117760
Calculation of equivalent units:
Equivalent units =
Therefore, conversion cost per unit = Total conversion cost/ equivalent units= 117760/29200= $4.03
