Conversion Cost per Unit = Total Conversion Costs/Total Units Produced = 130,000/2,500 = $52. Conversion costs are useful in determining the selling price of the product.

To calculate your inventory conversion period, you must know which of the two formulas you want to use. You start by determining the time it takes to sell inventory you've paid for, created and ...

Thus, the company's conversion costs per unit for the month of April are $6.80 per unit ($136,000 of total conversion costs / by 20,000 units produced = $6.80). Which Costs Are Both Prime and ...