Department F Had 4,000 Units in Work in Process That

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was 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% completed 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.
If the average cost method is used, the conversion cost per unit (to the nearest cent) would be

A) $3.71
B) $2.84
C) $2.97
D) $3.23

Correct Answer:

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