Reference no: EM132692104

Rock Manufacturing produced 10,000 units in 2019 and reported the following costs:

Sandpaper $32,000

Leasing costs-plant $ 384,000

Materials handling 320,000

Depreciation-equipment 224,000

Coolants & lubricants 22,400

Property taxes-equipment 32,000

Indirect manufacturing labor 275,200

Fire insurance-equipment 16,000

Direct manufacturing labor 2,176,000

Direct material purchases 3,140,000

Direct materials, 1/1/19 348,000

Direct materials, 12/31/19 280,000

Finished goods, 1/1/19 672,000

Sales revenue 12,800,000

Finished goods, 12/31/19 1,280,000

Sales commissions 640,000

Work-in-process, 1/1/19 96,000

Sales salaries 576,000

Work-in-process, 12/31/19 64,000

Advertising costs 480,000

Administration costs 800,000

Problem 1: Calculate the amount of conversion cost per unit.

a $592.16

b $652.96

c $348.16

d $668.96