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Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,000. Of the $12,000, $7,500 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 $30,800. 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 $33,600 and factory overhead was $18,100.
Problem 1: If the average cost method is used, the conversion cost per unit (to the nearest cent) would be
a. $3.26b. $5.11c. $3.12d. $3.75
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