Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are: Materials Conversion
Work in process, July 1 $8,000 $3,750
Costs added in July 63,000 52,500

The unit production costs for July are:

$3.55; $3.13

Explanation:

Calculation to determine what The unit production costs for July are:

Using this formula

Unit product cost = (Beginning work in progress + Cost added) / Number of units

MATERIALS

Unit product cost=($8000+$63,000) / 20,000 units

Unit product cost=$71,000/20,000

Unit product cost=$3.55

CONVERSION

Unit product cost = ($3750+$52500) / 18,000

Unit product cost=$56,250/18,000

Unit product cost=$3.125

Unit product cost=$3.13 (Approximately)

Therefore The unit production costs for July are:$3.55; $3.13

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Hope this could help you!!!

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