Part a.) Calculation of Direct Material cost per unit of output
Direct Material cost per unit
=Direct material cost/ Output units
=100000/10000= 10 per unit
Part b) Calculation of Conversion cost per unit
Conversion cost = Direct Labor + Manufacturing overheads
P1 | P2 | |
Direct labor | 80000 | 160000 |
Equipment maintenance | 20000 | 40000 |
Plant depreciation | 40000 | 60000 |
Conversion costs | 140000 | 260000 |
Output | 10000 | 10000 |
Conversion cost per unit | 14 | 26 |
any help? thanks! Patel Company uses a manufacturing process that has two distinct stages: P1 and...
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