Question

Production costs chargeable to the Finishing Department in June in Hollins Company are materials $14,016, labor $35,300, and overhead $19,762. Equivalent units of production are materials 21,900 and conversion costs 20,700.

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		$

Answer 1

Direct materials costs= $14,016

Direct labor = $35,300

Overheads = $19,762

Conversion cost = Direct labor + Overheads

= 35,300+19,762

= $55,062

Equivalent units of materials = 21,900

Equivalent units of conversion = 20,700

Materials cost per unit = Direct materials costs/ Equivalent units of materials

= 14,016/21,900

= $0.64

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

= 55,062/20,700

= $2.66

Materials cost per unit		$0.64
Conversion cost per unit		$2.66