Answer:
The cost per equivalent unit for conversion costs in the mixing department is $ 14.19
Explanation:
<em>Step 1 Calculate the Number of Units Completed</em>
Hint: Units input in process must equal units out of the process
Therefore Units Completed = 4,000 units+8,000 units - 2,500 units
= 9,500 units
<em>Step 2 Calculate the total conversion cost in the process for the period</em>
Hint : Conversion costs in Opening Work In Progress + Conversion Costs Started during the Process
Therefore:
Opening Work In Progress $55,000
Add Started during the Process $92,000
Total Conversion Costs $149,000
<em>Step 3 Calculate total Equivalent Units related to Conversion Costs</em>
Completed Units - 100% 9,500
Closing Work in Progress - 40% 1,000
Total 10,500
<em>Step 4 The cost per equivalent unit for conversion costs in the mixing department</em>
cost per equivalent unit for conversion costs= total conversion cost/ total Equivalent Units
= $149,000/ 10,500
= $ 14.19
