Honky Tonk Company manufactures tape dispensers. Its Assembly department had the following output and costs: $\begin{array}{ll}
\text { Units started and completed } & 70,000 \
\text { Started andin process } & 10,000
\end{array}$ These units had all materials added but were only 60% complete as far as conversion costs. Direct materials costs were $480,000; conversion costs were $240,000. The unit cost of conversion costs is:

Question

Quizplus · Accepted Answer

The unit cost of conversion costs is $3.16. This is calculated by dividing the total conversion costs by the total number of units produced. In this case, the total conversion costs are $240,000 and the total number of units produced is 70,000. Therefore, the unit cost of conversion costs is $240,000 / 70,000 = $3.16.

Honky Tonk Company Manufactures Tape Dispensers Units started and completed 70,000 Started andin process 10,000\begin{array}{ll}\text { Units started and completed } & 70,000 \\\text { Started andin process } & 10,000\end{array} Units started and completed Started andin process ​70,00010,000​

Honky Tonk Company Manufactures Tape Dispensers $\begin{array}{ll}\text { Units started and completed } & 70,000 \\\text { Started andin process } & 10,000\end{array}$