Cinder Company had the following department information for the month: $$\begin{array} { l r }
\text { Total materials costs } & \$ 60,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 90,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$$ How much is the total manufacturing cost per unit?

Question

Cinder Company had the following department information for the month: $$\begin{array} { l r } 
\text { Total materials costs } & \$ 60,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 90,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$$ How much is the total manufacturing cost per unit?

Quizplus · Accepted Answer

The total manufacturing cost per unit is calculated by adding the cost per equivalent unit for materials and conversion costs. Materials cost per unit is $60,000/10,000 = $6.00, and conversion cost per unit is $90,000/20,000 = $4.50. Therefore, the total cost per unit is $6.00 + $4.50 = $10.50.

Cinder Company Had the Following Department Information for the Month