Question

ast year, Buckner & Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing overhead 94,500 Selling expenses 25,200 Administrative expenses 23,100 Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. What was the conversion cost per unit? (Note: Round answer to two decimal places.) a.$50.55 b.$95.00 c.$125.65 d.$76.46

Answer 1

Answer:

correct option is d.$76.46

Explanation:

given data

Direct materials = $42,000

Direct labor = 63,000

Manufacturing overhead = 94,500

Selling expenses = 25,200

Administrative expenses = 23,100

sold = 2,060 units

to find out

conversion cost per unit

solution

we find first total conversion cost

total conversion cost  = Direct labor + Manufacturing overhead  ..........1

total conversion cost  = 63,000 + 94,500

 total conversion cost  = $157,500

and

Conversion cost per unit will be

Conversion cost per unit = $\frac{Total conversion cost}{sold}$

Conversion cost per unit =  $\frac{157,500 }{2060}$

Conversion cost per unit = 76.46

so correct option is d.$76.46