Question

In Mordica Company, total materials costs are $35,500, and total conversion costs are $54,000. Equivalent units of production are materials 10,000 and conversion costs 12,000. Incorrect answer. Your answer is incorrect. Try again. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $Entry field with incorrect answer now contains modified data Conversion cost per unit $Entry field with incorrect answer LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Compute total manufacturing costs. (Round answer to 2 decimal places, e.g. 2.25.) Total manufacturing cost per unit

Answer 1

Explanation:

The computation is shown below:

Material Cost per unit = Total Material Cost  ÷  Equivalent units of production

                                    =  $35,500 ÷ 10,000  units

                                    = $3.55

Conversion Cost per unit = Total conversion cost ÷  Equivalent units of production

                                          =  $54,000 ÷ 12,000  units

                                          = $4.5

Total Manufacturing cost per unit = Material cost per unit + conversion cost per unit

                                                        = 3.55 + 4.5

                                                        = $8.05