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Calculate the cost per equivalent unit for conversion

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Question - Excalibur Ltd. began operations on October 1 of the current year. Its production requires that direct materials are added at the beginning of the process and conversion costs are incurred uniformly. Direct materials costs for October were $380,000 and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units which were 60% complete. The cost per equivalent unit for conversion was:

a. $116.67

b. $21.88

c. $25.00

d. $70.00

e. $16.67

Reference no: EM132085771

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