Ask Question
17 October, 22:31

EB8.

LO 5.4A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78,400 and conversion costs of $47,000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?

+2
Answers (1)
  1. 18 October, 01:47
    0
    The unit cost for materials and conversion is $17.08 and $13 respectively

    Explanation:

    The computation of per unit cost is shown below:

    For material:

    = (Material cost received + additional material cost) : (equivalent units of material)

    = ($7,000 + $78,400) : (5,000 units)

    = ($85,400) : (5,000 units)

    = $17.08

    For conversion:

    = (Conversion cost received + additional conversion cost) : (equivalent units of conversion

    = ($5,000 + $47,000) : (4,000 units)

    = ($52,000) : (4,000 units)

    = $13
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “EB8. LO 5.4A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers