Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,850 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $8,160. An additional 90,700 units were started into production during the month and 93,700 units were completed in the Welding Department and transferred to the next processing department. There were 14,850 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $204,100 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

A) $2.050
B) $2.285
C) $1.983
D) $2.359

The cost per equivalent unit for conversion costs is calculated by adding the conversion costs in the beginning work in process inventory to the conversion costs incurred during the month, and then dividing by the total equivalent units for conversion costs. 1. Calculate the equivalent units for conversion costs:- Units completed and transferred out: 93,700 units (100% complete, so 93,700 equivalent units).- Units in ending work in process inventory: 14,850 units at 90% complete = 13,365 equivalent units.- Total equivalent units for conversion costs = 93,700 + 13,365 = 107,065 equivalent units.2. Calculate the total conversion costs:- Beginning work in process conversion costs: $8,160.- Conversion costs incurred during the month: $204,100.- Total conversion costs = $8,160 + $204,100 = $212,260.3. Calculate the cost per equivalent unit for conversion costs:- Cost per equivalent unit = Total conversion costs / Total equivalent units for conversion costs = $212,260 / 107,065 ≈ $1.983.Therefore, the cost per equivalent unit for conversion costs is closest to $1.983.