Marigold Company has the following equivalent units of production for July: materials 23240 and conversion costs 18500. Production cost data are: Materials Conversion Work in process, July 1 $ 5100 $ 3400 Costs added in July 53000 41000 The unit production costs for July are:

Question

Business

Guest

6 March, 05:32

Marigold Company has the following equivalent units of production for July: materials 23240 and conversion costs 18500. Production cost data are: Materials Conversion Work in process, July 1 $ 5100 $ 3400 Costs added in July 53000 41000 The unit production costs for July are:

+5

Answers (1)

Know the Answer?

Clinton Simon · Answer 1

Unit production is $4.9

Explanation:

Unit production per unit of materials = (materials WIP+cost of additional materials) / equivalent units of materials

materials WIP is $5100

cost of additional materials is $53000

equivalent units of materials is 23240

unit production cost per material = ($5100+$53000) / 23240

=$2.5

Unit production per unit of conversion costs = (Conversion WIP+additional conversion costs) / equivalent units of conversion costs

Conversion WIP is $3400

additional conversion costs $41000

equivalent units of conversion costs 18500

unit production cost per conversion cost = ($3400+$41000) / 18500

=$2.4

The unit production cost is $2.5+$2.4=$4.9