Conversion cost per unit equals $7.00.Total materials costs are $60,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?

Name: Conversion cost per unit equals $7.00.Total materials costs are $60,000.Equivalent units are 20,000.How much is the total manufacturing cost per unit?
Brand: Quizplus
Rating: 4.9 (59 reviews)

Question

Quizplus · Accepted Answer

Total manufacturing cost per unit is calculated by adding the conversion cost per unit ($7.00) to the materials cost per unit ($60,000 / 20,000 units = $3.00), resulting in $10.00 per unit.

Conversion Cost Per Unit Equals $7