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15 October, 07:16

Coronado Company had the following department information for the month: Total materials costs $55000 Equivalent units of materials 10000 Total conversion costs $81000 Equivalent units of conversion costs 15000 What is the total manufacturing cost per unit

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  1. 15 October, 07:23
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    10.9 per unit

    Explanation:

    Total manufacturing cost per unit = Material cost per unit + Conversion cost per unit

    Material Cost per Unit = Total materials cos / Equivalent units of materials

    Material cost per unit = 55000 / 10000 = 5.5

    Conversion cost per unit = Total conversion costs / Equivalent units of conversion costs

    Conversion cost per unit = 81,000 / 15000 = 5.4

    Hence, Total manufacturing cost per unit = 5.5 + 5.4 = 10.9 per unit
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