Conversion cost per unit equals $6. Total materials cost equal $90000. Equivalent units for materials are 10000. How much is the total manufacturing cost per unit?
A) $15.
B) $6.
C) $12.
D) $9.

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 $90000 / 10000 units = $9. Adding the conversion cost per unit of $6 gives a total manufacturing cost per unit of $15.

Conversion Cost Per Unit Equals $6