A department had the following information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 300,000 \
\text { Conversion cost per unit } & \$ 3.00 \
\text { Total manufacturing cost per unit } & \$ 5.00
\end{array}$ What are the equivalent units of production for materials?

Question

Quizplus · Accepted Answer

The equivalent units of production for materials are 150,000. This is because the total materials costs are $300,000 and the total manufacturing cost per unit is $5.00. Therefore, the total number of units produced is 300,000 / 5.00 = 60,000 units. Since the conversion cost per unit is $3.00, the equivalent units of production for materials are 60,000 units * 3.00 / 5.00 = 150,000 units.

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials? A)150,000

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials?
A)150,000