Byers Company had the following department information for the month: $$\begin{array} { l r }
\text { Total materials costs } & \$ 48,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 80,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$$ What is the total manufacturing cost per unit?

Question

Byers Company had the following department information for the month: $$\begin{array} { l r } 
\text { Total materials costs } & \$ 48,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 80,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$$ What 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 of materials and the cost per equivalent unit of conversion. Materials cost per unit is $48,000 / 10,000 = $4.80, and conversion cost per unit is $80,000 / 20,000 = $4.00. Therefore, the total manufacturing cost per unit is $4.80 + $4.00 = $8.80.

Byers Company Had the Following Department Information for the Month