Cinder Company had the following department information for the month: $\begin{array}{ll}
\text {Total materials costs. } &\$80,000\
\text { Equivalent units of materials } & \text { 10,000 } \
\text { Total conversion costs } &120,000\
\text {Equivalent units of conversion costs. } & \text {20.000 }\
\end{array}$
$\text { How much is the total manufacturing cost per unit? }$

A)$14.00
B)$6.67
C)$6.00
D)$8.00

Question

Cinder Company had the following department information for the month: $\begin{array}{ll}
  \text {Total materials costs.   } &\$80,000\
 \text { Equivalent units of materials  } & \text { 10,000 } \
 \text { Total conversion costs  } &120,000\
 \text {Equivalent units of conversion costs.   } & \text {20.000 }\
\end{array}$
$\text { How much is the total manufacturing cost per unit? }$

A)$14.00
B)$6.67
C)$6.00
D)$8.00

Quizplus · Accepted Answer

Total manufacturing cost per unit = (Total materials costs + Total conversion costs) / Equivalent units of conversion costs= (80,000 + 120,000) / 20,000= $10.00

Cinder Company Had the Following Department Information for the Month