Direct labor of $589,323 and factory overhead of $314,601 are incurred in May against 44,310 equivalent units of conversion. What is conversion cost per equivalent unit?

1. Conversion cost is direct labor plus factory overhead. 2. That is $589,323 plus $314,601, which is $903,924 for May. 3. The denominator must be equivalent units for conversion, which is 44,310 units. 4. Conversion cost per equivalent unit is $903,924 divided by 44,310, which is $20.40 per unit. 5. Dividing by the materials figure of 44,700 units instead would give about $20.22 per unit, which is the classic mismatch of pool and driver. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 3.3 Process Costing Calculations for a Department in a Manufacturing Company_