Conversion Cost Per Unit Equals $6

question 13

Multiple Choice

Conversion cost per unit equals $6.00.Total materials cost equals $40,000.Equivalent units for direct materials are 20,000.How much is the total manufacturing cost per unit?

• A)$8.00
• B)$6.00
• C)$10.00
• D)$2.00

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Definitions:

Units-of-Production Method

A depreciation method that allocates expense based on the actual usage or output of the asset, reflecting its wear and tear more accurately.

Depreciation Expense

A financial approach to distribute the expense of a physical asset throughout its operational lifespan.

Residual Value

The estimated value that an asset will have at the end of its useful life, after factoring in depreciation or amortization.