Conversion cost per unit equals $9.00. Total materials costs are $60,000. Equivalent units are 20,000. How much is the total manufacturing cost per unit?
A) $12.00.
B) $9.00.
C) $6.00.
D) $3.00.

Question

Quizplus · Accepted Answer

Total manufacturing cost per unit = Conversion cost per unit + Total materials cost per unit
Total materials cost per unit = Total materials costs / Equivalent units
Total materials cost per unit = $60,000 / 20,000 = $3.00
Total manufacturing cost per unit = $9.00 + $3.00 = $12.00

Conversion Cost Per Unit Equals $9