HaulAll Inc.had a per-unit conversion cost of $4.00 during April and incurred a direct materials cost of $100,000,direct labour costs of $110,000,and overhead costs of $50,000.How many units did HaulAll manufacture during May?
A)18,000
B)30,000
C)48,000
D)70,000

Question

Quizplus · Accepted Answer

Conversion costs are the costs required to convert raw materials into finished goods and include direct labor and overhead costs. In this case, the total conversion costs for HaulAll Inc. are the sum of direct labor costs ($110,000) and overhead costs ($50,000), which equals $160,000. Given that the per-unit conversion cost is $4.00, the number of units manufactured can be calculated by dividing the total conversion costs by the per-unit conversion cost: $160,000 / $4.00 = 40,000 units. However, there seems to be a misunderstanding in the calculation or the options provided, as none of the options match this calculation. Based on the information given and typical calculation methods, the correct calculation leads to 40,000 units, but since this option is not available and assuming a mistake in my explanation or a misinterpretation of the question, further clarification from the question would be needed to accurately select from the provided choices.