Question

The Mixing Department of Tasty Foods has 50,000 equivalent units of materials and 36,000 equivalent units of conversion costs for October. The Mixing Department of Tasty Foods has direct materials costs of $52,000 and conversion costs of $21,600 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.Cost of completed units/Equivalent units =__________ Cost per equivalent unitThe direct materials cost per equivalent unit =___________ $The conversion cost per equivalent unit =__________ $

Answer 1

Answer:

Direct material cost for each equivalent unit =$1.04

Conversion cost for each equivalent unit = $0.40

Explanation:

Given data:

direct material cost = $52000

units of material = 50000

Equivalent units for october =  36000

conversion cost for october = $21600

direct material cost for each equivalent unit = direct material cost/ equivalent conversion units

direct material cost for each equivalent unit = 52000/50000 = $1.04

conversion cost for each equivalent unit = conversion cost/ equivalent cost

conversion cost for each equivalent unit =21600/36000 = $0.40