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kotegsom [21]
3 years ago
10

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,098,900. The c

onversion cost for the period in the Bottling Department is $603,000. The total equivalent units for direct materials and conversion are 33,300 liters and 6,700 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.
Business
1 answer:
vfiekz [6]3 years ago
5 0

Answer:

direct materials =  $33.00

conversion cost = $90.00

Explanation:

<em>Cost per equivalent unit = Cost during the period ÷ Equivalent units of Production</em>

<u>The direct materials and conversion cost per equivalent unit.</u>

Direct materials = $1,098,900 ÷ 33,300 liters = $33.00

Conversion cost = $603,000 ÷ 6,700 liters = $90.00

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