A department had the following information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 210,000 \
\text { Conversion cost per unit } & \$ 3.00 \
\text { Total manufacturing cost per unit } & \$ 5.00
\end{array}$ What are the equivalent units of production for materials?

Question

Quizplus · Accepted Answer

The total manufacturing cost per unit is $5.00, and the conversion cost per unit is $3.00. This means that the materials cost per unit is $5.00 - $3.00 = $2.00. The total materials costs are $210,000, so the equivalent units of production for materials are $210,000 / $2.00 = 105,000.

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials? A)105,000

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials?
A)105,000