Question

White Supplies' total material costs are $30,000 and total conversion costs are $20,000. Equivalent units of production for materials are 10,000, and 5,000 for conversion costs.

Compute the unit costs for materials, conversion costs, and total manufacturing costs for the month.
COSTS
Unit costs Materials Conversion Costs Total
Costs incurred
Equivalent units
Unit costs

Answer 1

Material Conversion cost

Cost per unit $3 per unit $4 per unit

Step-by-step explanation:

Cost per equivalent unit is computed by dividing the the total cost of each expenditure type by its the total total equivalent units.

Equivalent is a notional whole unit which represent incomplete and is used t to apportion cost between work in progress and completed work

The cost per equivalent units= total cost of expenditure type / total equivalent units

Material Conversion cost

Total cost 30,000 20,000

Equivalent units 10,000 5,000

Cost per unit $30,000/10000 $20,000/5000

= $3 per unit $4 per unit

Material Conversion cost

Cost per unit $3 per unit $4 per unit