Question

The Mixing Department of Foods for You has 62 comma 000 equivalent units of materials and 42 comma 800 equivalent units of conversion costs for October. The Mixing Department of Foods for You has direct materials costs of $ 55 comma 800 and conversion costs of $ 32 comma 100 for October. Compute the cost per equivalent unit of production for direct materials and for conversion costs. (Round to the nearest cent.) Begin by determining the formula to compute cost per equivalent unit.

a. Cost of completed units/Equivalent units = Cost per equivalent unit
b. The direct materials cost per equivalent unit = $
c. The conversion cost per equivalent unit = $

Answer 1

The direct materials cost per equivalent unit = $0.9

The conversion cost per equivalent unit = $0.75

Step-by-step explanation:

The computation of the cost per equivalent unit of production is shown below:

For direct materials:

= (Direct material cost) ÷ (equivalent units for the materials)

= ($55,800) ÷ (62,000 units)

= $0.9

For conversion cost:

= (Conversion cost) ÷ (equivalent units for the conversion cost)

= ($32,100) ÷ (42,800 units)

= $0.75