Williams Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month:
$\begin{array} { l }
\text {Units started and completed }&70,000\
\text {Units started and not complete }&10,000\
\text {Units in beginning inventory }&0\
\end{array}$

$\begin{array} { l }
\text {Direct materials costs }&\$480,000 \
\text { Conversion costs}&\$240,000 \
\end{array}$

The partially complete units at the end of the month were 100 percent complete with respect to materials and 40 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

Question

Williams Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month:
$\begin{array} { l  }
 \text {Units started and completed }&70,000\
 \text {Units started and not complete }&10,000\
 \text {Units in beginning inventory }&0\
\end{array}$

$\begin{array} { l  }
 \text {Direct materials costs }&\$480,000 \
\text { Conversion costs}&\$240,000 \
\end{array}$

The partially complete units at the end of the month were 100 percent complete with respect to materials and 40 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

Quizplus · Accepted Answer

To find the unit cost of conversion costs, we first calculate the equivalent units for conversion costs. The units started and completed (70,000) are 100% complete for conversion, so they count as 70,000 equivalent units. The units started and not complete (10,000) are 40% complete for conversion, so they add 4,000 equivalent units (10,000 units * 40% = 4,000). The total equivalent units for conversion costs are 74,000 (70,000 + 4,000). The total conversion costs are $240,000. Therefore, the unit cost of conversion costs is $240,000 / 74,000 = $3.24.

Williams Company Manufactures Tape Dispensers Direct materials costs $480,000 Conversion costs$240,000\begin{array} { l } \text {Direct materials costs }&\$480,000 \\\text { Conversion costs}&\$240,000 \\\end{array}Direct materials costs Conversion costs​$480,000$240,000​

Williams Company Manufactures Tape Dispensers $\begin{array} { l } \text {Direct materials costs }&\$480,000 \\\text { Conversion costs}&\$240,000 \\\end{array}$