Jones Company started 60 000 units into production during the current period and completed 42 000. The other 18 000 units were 40% complete as to conversion costs at the end of the period. Total costs were $160 000 for material and $116 000 for conversion costs. Material is added at the beginning of the production process. Unit raw material and conversion costs for the period were:
Raw materials cost; Conversion cost

Question

Quizplus · Accepted Answer

The raw materials cost per unit is $160,000 / 60,000 units = $2.67. The equivalent units for conversion costs are 42,000 completed + (18,000 * 40%) = 49,200. The conversion cost per unit is $116,000 / 49,200 = $2.36.

Jones Company Started 60 000 Units into Production During the Current