Question

Determine the​ formula, then enter the amounts to calculate the equivalent units of production for direct materials and conversion costs

Answer 1

Direct materials cost per equivalent unit=$0.75

Conversion cost per equivalent unit=$0.55

Step-by-step explanation:

Computation of the cost per equivalent unit of production for direct materials.

Using this formula

Direct materials cost per equivalent unit = Direct materials costs /Equivalent units of materials

Let plug in the formula

Direct materials cost per equivalent unit = $48,750/65,000

Direct materials cost per equivalent uni=$0.75

Computation of the cost per equivalent unit of production for conversion costs.

Using this formula

Conversion cost per equivalent unit =Conversion costs/Equivalent units of conversion costs

Let plug in the formula

Conversion cost per equivalent unit = $24,750/45,000

Conversion cost per equivalent unit=$0.55

Therefore the Direct materials cost per equivalent unit will be $0.75 while

Conversion cost per equivalent unit will be $0.55