Question

In Mordica Company, total materials costs are $42,000, and total conversion costs are $54,480. Equivalent units of production are materials 10,000 and conversion costs 12,000.
A. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25)
Materials cost per unit $
Conversion cost per unit $
B. Compute total manufacturing costs. (Round answers to 2 decimal places, e.g. 2.25)
Total manufacturing cost per unit $

Answer 1

Answer:

A Unit cost of material= $42 per unit

Unit cost of conversion cost= $4.54  per unit

B Total manufacturing cost  = $96,480

Explanation:

Unit cost of material = Material cost/ Equivalent unit

Unit cost of material =  $42,000/ 10,000 = $42 per unit

Unit cost of material= $42 per unit

Unit cost of conversion cost = Conversion cost/Equivalent unit

Unit cost of conversion cost = 54,480/12,000 = $4.54  per unit

Unit cost of conversion cost= $4.54  per unit

Total manufacturing cost  = material cost + conversion cost

Total manufacturing cost =  $42,000+ $54,480 = $96,480

Total manufacturing cost  = $96,480