Cinder Company had the following department information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 80,000 \
\text { Equivalent units of materials } & 10,000 \
\text { Total conversion costs } & \$ 120,000 \
\text { Equivalent units of conversion costs } & 20,000
\end{array}$ How much is the total manufacturing cost per unit?

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 $80,000 / 10,000 = $8.00, and conversion cost per unit is $120,000 / 20,000 = $6.00. Therefore, the total cost per unit is $8.00 + $6.00 = $14.00.

Cinder Company Had the Following Department Information for the Month