A company sells each unit of its product for $ 107. The final department showed the following costs per equivalent unit: $ 48 transferred-in, $ 23 direct materials, $ 12 conversion. What is the gross profit on each unit sold by the company?

$24

Explanation:

Gross profit is the net return from the selling price of the product less all the manufacturing cost associated with that product. These cost included material and conversion cost of all the departments working on the product.

Conversion cost is the some of all the manufacturing cost except the material cost, in other work all the cost incurred to convert the raw material to a finished product is called conversion costs.  

Selling Price of the product = $107

Costs:

Material                      $23

Conversion cost        $12

Cost Transferred In   $48

Total Cost                               $83

Gross profit                              $24

statement of owner's equity;