A department had the following information for the month: $\begin{array}{lr}
\text { Total materials costs } & \$ 300,000 \
\text { Conversion cost per unit } & \$ 3.00 \
\text { Total manufacturing cost per unit } & \$ 5.00
\end{array}$ What are the equivalent units of production for materials?
A)150,000.
B)100,000.
C)60,000.
D)Cannot be determined

Question

Quizplus · Accepted Answer

The total manufacturing cost per unit is $5.00, and the conversion cost per unit is $3.00. This means that the materials cost per unit is $2.00 ($5.00 - $3.00). The total materials costs are $300,000, so the equivalent units of production for materials are $300,000 / $2.00 = 150,000.

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials? A)150,000

A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials?
A)150,000