Question

Based on the following information:

			Materials	Wages	Machining	Other	Total cost
Order Processing			$ 28,000			28,000
Purchasing			43,000			43,000
Cutting			$ 160,000	36,000	$33,000	$ 8,000	237,000
Forming			57,500	49,000	22,000	12,000	140,500
Finishing			42,500	28,000	5,000		75,500
Testing				30,000			30,000
Packaging and Shipping				10,000			10,000
Invoicing				6,000			6,000
Totals			$260,000	$230,000	$60,000	$20,000	$570,000
Part A	2,005	units
Part Q	4,100	units
Total	6,105	units

What is the product cost based on total average conversion cost? (Round to nearest cent.)

a.$50.78

b.$100.56

c.$36.04

d.$48.32

Answer 1