Brief Exercise 166 In Mordica Company total material costs a

Brief Exercise 16-6 In Mordica Company, total material costs are $33,500, and total conversion costs are $55,500. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit Conversion cost per unit Compute total manufacturing costs. (Round answer to 2 decimal places, e.g. 2.25.) Total manufacturing cost per unit Click if you would like to Show Work for this question: Open Show Work Question Attempts: Unlimited © 2000-2018 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, lnc.

Solution

Compute unit cost :

Material cost per unit = Material cost/equivalent unit of material

= 33500/10000

Material cost per unit = 3.35 per unit

Conversion cost per unit = conversion cost/equivalent unit of conversion cost per unit

= 55500/12000

Conversion cost per unit = 4.63 per unit

2.) Total manufacturing cost per unit = material cost per unit+conversion cost per unit

= 3.35+4.63

Total manufacturing cost per unit = 7.98 per unit