Asked by Megan Carlson on Apr 27, 2024
Verified
Conversion cost per unit equals $7.00. Total materials costs are $80000. Equivalent units are 20000. How much is the total manufacturing cost per unit?
A) $11.00.
B) $7.00.
C) $4.00.
D) $3.00.
Conversion Cost
Costs incurred during the manufacturing process, which include direct labor and overhead costs, to convert raw materials into finished products.
Total Manufacturing Cost
Total Manufacturing Cost is the aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in the production process.
- Acquire knowledge on the procedure to calculate the aggregate manufacturing costs and per unit cost.
Verified Answer
CA
Cassandra AeschlimanMay 03, 2024
Final Answer :
A
Explanation :
The total manufacturing cost per unit is calculated by adding the materials cost per unit to the conversion cost per unit. The materials cost per unit is $80,000 / 20,000 units = $4.00. The conversion cost per unit is given as $7.00. Therefore, the total manufacturing cost per unit is $4.00 + $7.00 = $11.00.
Learning Objectives
- Acquire knowledge on the procedure to calculate the aggregate manufacturing costs and per unit cost.
Related questions
Madison Industries Has Equivalent Units of 8000 for Materials and ...
Materials Costs of $600000 and Conversion Costs of $642600 Were ...
Byrd Company Decided to Analyze Certain Costs for June of ...
The Sum of the Direct Materials Costs Direct Labor Costs ...
Durphey Corporation Has Provided the Following Data Concerning Last Month's ...