Ready Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department follows:
WIP, April 1 |
14,000 units |
Transferredminus-in costs in WIP, April 1 |
$79,940 |
Direct materials (100%) in WIP, April 1 |
$24,420 |
Conversion costs (75%) in WIP, April 1 |
$23,400 |
Units transferredminus-in |
47,000 |
Transferredminus-in costs during April |
$550,900 |
Units completed |
41,000 |
April direct materials cost |
$155,500 |
April conversion costs |
$239,250 |
WIP, April 30 |
20,000 units |
(100% for materials and 50% for conversion costs) |
|
The cost per equivalent unit for conversion costs would be closest to