Question

In Lopez Company, total material costs are $36,400, and total conversion costs are $55,080. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials, conversion costs, and total manufacturing costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ Conversion cost per unit $ Total manufacturing cost per un

Answer 1

Answer:

Material cost per unit = $3.64

Conversion cost per unit = $4.59

Manufacturing cost per unit = $8.23

Explanation:

1. Calculate the unit cost for materials:

Material cost per unit = $\frac{36,400}{10,000}$

Material cost per unit = $3.64

2. Calculate the unit cost for conversion costs:

Conversion cost per unit = $\frac{55,080}{12,000}$

Conversion cost per unit = 4.59

3. Calculate the total manufacturing costs:

Manufacturing cost per unit = Material cost per unit + Conversion cost per unit

Manufacturing cost per unit = $3.64 + $4.59

Manufacturing cost per unit = $8.23