Answer:
a. $2.00; $4.50
Explanation:
Equivalent unit of material = 120,000 units + (15,000 units*40%)
Equivalent unit of material = 120,000 units + 6,000 units
Equivalent unit of material = 126,000 units
Cost per equivalent unit of material = ($22,400 + $229,600) / 126,000 unit
Cost per equivalent unit of material = $252,000 / 126,000 unit
Cost per equivalent unit of material = $2 per unit
Equivalent unit of conversion cost = 120,000 units + (15,000*10%)
Equivalent unit of conversion cost = 120,000 units + 1,500 units
Equivalent unit of conversion cost = 121,500 units
Cost per equivalent unit of conversion = ($6,250 + $540,500) / 121,500 units
Cost per equivalent unit of conversion = $546,750 / 121,500 units
Cost per equivalent unit of conversion = 4.50 per unit.
