Holton Company has the following equivalent units for July: materials 20000 and conversion 18000. Production cost data are: $\begin{array}{l}\begin{array}{lrc}& \text{ Materials }& \text{ Conversion }\\ \text{ Work in process, July }1& \$8,000& \$3,750\\ \text{ Costs added in July }& 63,000& 52,500\end{array}\\ \\ \text{ The unit production costs for July are: }\end{array}$
$\begin{array}{lrr}& \text{ Materials }& \text{ Conversion Costs }\end{array}$
A) $\begin{array}{lrrccc}& \$3.15& & & & \$3.13\end{array}$
B) $\begin{array}{lrrcccc}& 3.55& & & & & 2.92\end{array}$
C) $\begin{array}{lrrcccc}& 3.15& & & & & 2.92\end{array}$
D) $\begin{array}{lrrcccc}& 3.55& & & & & 3.13\end{array}$

Equivalent Units

Equivalent units are a concept in process costing that represents the amount of work done on a product in terms of fully completed units, used to allocate costs in manufacturing.

Production Cost

Production cost is the total expense incurred in the process of creating goods or services, including raw materials, labor, and overhead costs.