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Ad libitum [116K]
3 years ago
5

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.
Business
1 answer:
Sonja [21]3 years ago
7 0

Answer:

See below

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

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