Question

The cost of direct materials transferred into the Filling Department of Lilac Skin Care Company is $20,250. The conversion cost for the period in the Filling Department is $6,372. The total equivalent units for direct materials and conversion are 45,000 ounces and 42,480 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit.

Answer 1

See below

Step-by-step explanation:

Given the above Information,

1. Direct materials per equivalent unit

= Cost incurred / Equivalent unit

= $20,250 / 45,000

= $0.45 per unit

2. Conversion cost per equivalent unit

= Cost incurred / Equivalent unit

= $6,372 / 42,480

= $0.15 per unit