Conversion cost per unit equals $6.00.Total materials cost equals $40,000.Equivalent units for direct materials are 20,000.How much is the total manufacturing cost per unit?
A)$8.00
B)$6.00
C)$10.00
D)$2.00

Question

Quizplus · Accepted Answer

The total manufacturing cost per unit is calculated by adding the materials cost per unit to the conversion cost per unit. The materials cost per unit is $40,000 / 20,000 units = $2.00. Adding the conversion cost per unit of $6.00 gives a total manufacturing cost per unit of $8.00.

Conversion Cost Per Unit Equals $6