A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78,400 and conversion costs of $47,000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?

Solution

		Equivalent Units	Per Unit
Material	$85,400	5,000	$17.08
Conversion	$52,000	4,000	$13.00