Answer:
$1.88; $2.00
Explanation:
Equivalent Units Produced for direct material:
= Opening Work In Progress + Introduced + Closing units
= units × Degree of completion
= (59,000 × 0%) + (159,000 × 100%) + (84,000 × 100%)
= 0 + 159,000 + 84,000
= 243,000
Equivalent Units Produced for conversion costs:
= Opening Work In Progress + Introduced + Closing units
= Units × Degree of completion
= (59,000 × 65%) + (159,000 × 100%) + (84,000 × 20%)
= 38,350 + 159,000 + 16,800
= 214,150
Cost Per Equivalent Units for direct material:
= Total Cost Incurred ÷ Equivalent Units Produced
= $456,840 ÷ 243,000
= $1.88
Cost Per Equivalent Units for conversion cost:
= Total Cost Incurred ÷ Equivalent Units Produced
= $428,300 ÷ 214,150
= $2.00
