At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials Beginning WIP conversion costs Costs of materials added Costs of conversion added WIP beginning (50% for conversion) Units started 106,700 Units completed and transferred out units WIP ending (60% for conversion) 41,000 units What is the cost per equivalent unit for conversion costs? $2.88 $3.25 $2.97 $32,000 $36,000 $384,100 $390,100 25,200 units 122,500 units O $3.57

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At Hodgson Corporation, direct materials are added at the beginning of the process and
conversions costs are uniformly applied. Other details include:
Beginning WIP direct materials
Beginning WIP conversion costs
Costs of materials added
$32,000
$36,000
$384,100
$390,100
25,200 units
122,500
units
106,700
Units completed and transferred out
units
WIP ending (60% for conversion)
41,000 units
What is the cost per equivalent unit for conversion costs?
Costs of conversion added
WIP beginning (50% for conversion)
Units started
$2.88
$3.25
$2.97
O $3.57
Transcribed Image Text:At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials Beginning WIP conversion costs Costs of materials added $32,000 $36,000 $384,100 $390,100 25,200 units 122,500 units 106,700 Units completed and transferred out units WIP ending (60% for conversion) 41,000 units What is the cost per equivalent unit for conversion costs? Costs of conversion added WIP beginning (50% for conversion) Units started $2.88 $3.25 $2.97 O $3.57
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