Taylor & Edwards Inc. manufactures television sets. Last month, direct materials

Question

Taylor & Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000. The company manufactured 8,400 television sets during the month. Assume that there were no beginning or ending work in process balances. What was the per-unit conversion cost? (Note: Round answer to two decimal places.)

Explanation / Answer

Conversion costs

= Direct labor + Manufacturing overhead

= $880,000 + $495,000

= $1,375,000

So, per-unit conversion cost

= Total conversion costs / Number of units

= $1,375,000 / 8,400

= $163.69 per unit

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.