Question

Bramble Company has the following equivalent units of production for July: materials 30200 and conversion costs 23500. Production cost data are:
Materials Conversion
Work in process, July 1 $6400 $2600
Costs added in July 54000 35000

The unit production costs for July are:

Materials Conversion Costs
a. $1.79 $1.60
b. $1.79 $1.49
c. $2.00 $1.49
d. $2.00 $1.60

Answer 1

Answer:

d. $2.00 $1.60

Explanation:

The unit production costs for July are calculated as

Total Cost Calculation

Materials = $6400 + $54000 = $60,400

Conversion Costs = $2600 + $35000 = $37,600

Cost per equivalent unit

Materials = $60,400 ÷ 30,200 units =$2.00

Conversion Costs =  $37,600  ÷ 23500 units =$1.60