Question

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.)

Answer 1

Answer:

$76.46 per unit

Explanation:

Conversion costs = direct labor costs + manufacturing costs

*conversion costs do not include materials.

total conversion costs =  direct labor ($63,000) + manufacturing overhead ($94,500) = $157,500

conversion cost per unit = $157,500 / 2,060 units = $76.46 per unit