Conversion cost per unit equals $7.00. Total materials costs are $80000. Equivalent units are 20000. How much is the total manufacturing cost per unit?
A) $11.00.
B) $7.00.
C) $4.00.
D) $3.00.

Question

Quizplus · Accepted Answer

The total manufacturing cost per unit is calculated by adding the materials cost per unit to the conversion cost per unit. The materials cost per unit is $80,000 / 20,000 units = $4.00. The conversion cost per unit is given as $7.00. Therefore, the total manufacturing cost per unit is $4.00 + $7.00 = $11.00.

Conversion Cost Per Unit Equals $7