Ask Question
21 June, 09:28

Last year, Buckner and Jones Company incurred the following costs: Direct material $42,000 Direct labor 63,000 Manufacturing overhead 94,500 Selling expenses 25,200 Administrative expenses 23,100 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.) a. $50.55 b. $76.46 c. $95.00 d. $125.65

+4
Answers (1)
  1. 21 June, 11:19
    0
    The answer is: B) $76.46

    Explanation:

    Conversion costs are those incurred when turning raw materials into finished products. To get the conversion cost of a product you must add direct labor and manufacturing costs, we can use the following formula:

    Conversion Costs = Direct Labor + Manufacturing Overheads

    Conversion Costs = $63,000 + $94,500 = $157,500

    Then we divide the total conversion costs by the total amount of units manufactures:

    Conversion cost per unit = $157,000 / 2,060 units = $76.46 per unit
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Last year, Buckner and Jones Company incurred the following costs: Direct material $42,000 Direct labor 63,000 Manufacturing overhead ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers