Answer:
Equivalent Unit of Materials=$32
Equivalent Unit of Conversion Costs=$60
Explanation:
Calculation to Determine the direct materials and conversion cost per equivalent unit
Calculation for DIRECT MATERIALS
Using this formula for direct materials
Equivalent Unit of Materials=Cost of direct materials transferred/Total equivalent units for direct materials
Let plug in the formula
Equivalent Unit of Materials=$918,400/28,700 liters
Equivalent Unit of Materials=$32
Calculation for CONVERSION COST PER EQUIVALENT UNIT
Using this formula
Equivalent Unit of Conversion Costs=Conversion cost/Total equivalent units for Conversion
Let plug in the formula
Equivalent Unit of Conversion Costs=$516,000/8,600 liters
Equivalent Unit of Conversion Costs=$60
Therefore the direct materials and conversion cost per equivalent unit will be :
Equivalent Unit of Materials=$32
Equivalent Unit of Conversion Costs=$60
