Terry's Service Corporation reported the following data:

Required:
Compute the direct material cost per unit;the conversion cost per unit;and,the total department cost per unit.
A)$133.33;$66.66;$199.99
B)$135.00;$68.00;$208.00
C)$137.50;$70.00;$207.50
D)$140.00;$75.00;$215.00
E)$142.00;$78.00;$220.00

Question

Terry's Service Corporation reported the following data:

Required:
Compute the direct material cost per unit;the conversion cost per unit;and,the total department cost per unit.
A)$133.33;$66.66;$199.99 
B)$135.00;$68.00;$208.00 
C)$137.50;$70.00;$207.50 
D)$140.00;$75.00;$215.00 
E)$142.00;$78.00;$220.00

Quizplus · Accepted Answer

A)Direct material cost-per unit: ($40,000 / 300 units)= $133.33
Conversion cost per unit ($20,000 / 300 units)= $66.66
Department cost per unit ($133.33 + $66.66)= $199.99

Terry's Service Corporation Reported the Following Data