Question: Department E had 4,000 work-in-process units that were 40% complete at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000
Department E had 4,000 work-in-process units that were 40% complete at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for materials and $4,500 for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period and 3,000 units were 75% complete at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.
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If the average cost method is used, what would be the conversion cost per unit?
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