Return to the original GogglesPlus example in Exhibits. Suppose direct labour is $34,000 rather than $21,250. Now what is the conversion cost per equivalent unit?

GogglesPlus SHAPING DEPARTMENT Month Ended October 31 Step 2 Equivalent Units Step 1 Flow of Physical Direct Conversion Flow of Production Units to account for: Units Materials Costs Beginning work in process, October 1 Started in production during October Total physical units to account for 0 50,000 50,000 Units accounted for: Completed and transferred out during October Ending work in process, October 31 Total physical units accounted for 40,000 10,000 50,000 40,000 40,000 10,000 2,500* Total equivalent units 50,000 42,500 10,000 units each 25% complete= 2,500 equivalent units GogglesPlus SHAPING DEPARTMENT Month Ended October 31 Direct Conversion Materials Costs Total Beginning work in process, October 1 Costs added during October Total costs to account for 140,000 $140,000 $68,000 $208,000 21,250 of direct labour plus $46,750 of manufacturing overhead $68,000 of conversion costs