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18 July, 13:15

Last year, Buckner & Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing overhead 94,500 Selling expenses 25,200 Administrative expenses 23,100 Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. What was the conversion cost per unit? (Note: Round answer to two decimal places.)

a.$125.65

b.$76.46

c.$95.00

d.$50.55

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  1. 18 July, 13:28
    0
    Unitary Conversion costs = $76.46

    Explanation:

    Giving the following information:

    Direct materials $42,000

    Direct labor 63,000

    Manufacturing overhead 94,500

    Buckner & Jones produced and sold 2,060 units.

    Conversion costs = direct labor + manufacturing overhead

    Conversion costs = 63,000 + 94,500 = $157,500

    Unitary Conversion costs = 157,500/2060 units = $76.46
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