5.) The cost of direct materials transferred into the Bottling Department of the

Question

5.) The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total equivalent units for direct materials and conversion are 60,500 and 63,300 respectively. Determine the direct materials and conversion cost per equivalent unit.

ROUND YOUR ANSWER TO THE NEAREST CENT

EQUIVALENT UNITS OF MATERIALS: $

EQUIVALENT UNITS OF CONVERSION: $

THESE ARE MY ANSWERS AND I WOULD LIKE TO DOUBLE CHECK TO SEE IF THEIR RIGHT.

EQUIVALENT UNITS OF MATERIALS: $0.45

EQUIVALENT UNITS OF CONVERSION: $ 0.12

Explanation / Answer

Cost per equivalent unit of material = (27225/60500) = 0.45 per equivalent unit

Cost per equivalent unit of conversion = (7596/63300) = 0.12 per equivalent unit of conversion

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