Asked by George Greer on Jun 28, 2024
Verified
Conversion cost per unit equals $6. Total materials cost equal $90000. Equivalent units for materials are 10000. How much is the total manufacturing cost per unit?
A) $15.
B) $6.
C) $12.
D) $9.
Conversion Cost
Costs incurred during the transformation of raw materials into finished products, mainly consisting of direct labor and manufacturing overhead.
Total Materials Cost
The sum of all costs associated with the raw materials used in the production of a product.
Equivalent Units
A measure used in cost accounting to express the amount of work done on partially finished goods as a proportion of finished goods.
- Recognize the link between the cost of materials, the expenses of conversion, and the aggregate manufacturing cost for each unit.
Verified Answer
Learning Objectives
- Recognize the link between the cost of materials, the expenses of conversion, and the aggregate manufacturing cost for each unit.
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