Mickler Productions Uses Process Costing

question 110

Multiple Choice

Mickler Productions uses process costing. Its Mixing Department incurred conversion costs of $650,820 during January, and had a beginning Work in Process inventory of $30,430 for conversion costs. 54,000 units were transferred out of the department, and the ending inventory consisted of 2,500 units that are 20% complete with respect to conversion costs. What is the conversion cost per equivalent unit?

• A) $12.50
• B) $12.05
• C) $12.17
• D) $12.62