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

A Unit cost of material= $42 per unit

Unit cost of conversion cost= $4.54 per unit

B Total manufacturing cost = $96,480

Step-by-step 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