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

Question

Yadira Cisneros

Business

19 September, 16:58

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

+3

Answers (1)

Know the Answer?

Deja Henson · Answer 1

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