Cinder Company had the following department information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 60,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 90,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$ How much is the total manufacturing cost per unit?
A) $10.50.
B) $5.00.
C) $4.50.
D) $6.00.

Question

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. Conversion cost per unit is $90,000 / 20,000 = $4.50. Total cost per unit is $6 + $4.50 = $10.50.

Cinder Company Had the Following Department Information for the Month