Question

A department had the following information for the month: Total materials costs $301000 Conversion cost per unit $4.00 Total manufacturing cost per unit $5.00 What are the equivalent units of production for materials?

Answer 1

301,000 units

Step-by-step explanation:

The computation of the equivalent units of production for materials is shown below:

= Total material cost ÷ Material cost per unit

where,

Total material cost is $301,000

And, the material cost per units is

= Total manufacturing cost per unit - Conversion cost per unit

= $5 - $4

= $1

So, the equivalent units of production is

= $301,000 ÷ $1 per unit

= 301,000 units