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3 July, 02:02

A department had the following information for the month: Total materials costs $301000 Conversion cost per unit $4.00 Total manufacturing cost per unit $5.00 What are the equivalent units of production for materials?

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  1. 3 July, 02:32
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    301,000 units

    Explanation:

    The computation of the equivalent units of production for materials is shown below:

    = Total material cost : Material cost per unit

    where,

    Total material cost is $301,000

    And, the material cost per units is

    = Total manufacturing cost per unit - Conversion cost per unit

    = $5 - $4

    = $1

    So, the equivalent units of production is

    = $301,000 : $1 per unit

    = 301,000 units
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