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In the cutting department of Chess Company, conversion costs are added uniformly throughout the process. With the information given below, calculate the cost per equivalent unit for conversion using the average cost procedure.
Conversion
Units Costs
Beginning inventory...................... 8,500 $12,800
Started during period.................... 41,000 70,000
Ending work in process inventory
(50% complete).......................... 7,000
A. $1.34
B. $1.80
C. $2.04
D. $1.58
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