FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $122,880. The conversion cost for the period in the Filling Department is $398,240. The total equivalent units for direct materials and conversion are 51,200 ounces and 52,400 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

**Cost per Equivalent Unit**

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $122,880. The conversion cost for the period in the Filling Department is $398,240. The total equivalent units for direct materials and conversion are 51,200 ounces and 52,400 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

- Direct materials cost per equivalent unit: $______ per ounce
- Conversion costs per equivalent unit: $______ per ounce

This exercise involves calculating the cost per equivalent unit by dividing the total costs by the total equivalent units for both direct materials and conversion.
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Transcribed Image Text:**Cost per Equivalent Unit** The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $122,880. The conversion cost for the period in the Filling Department is $398,240. The total equivalent units for direct materials and conversion are 51,200 ounces and 52,400 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. - Direct materials cost per equivalent unit: $______ per ounce - Conversion costs per equivalent unit: $______ per ounce This exercise involves calculating the cost per equivalent unit by dividing the total costs by the total equivalent units for both direct materials and conversion.
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Equivalent Units: An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically, the fully completed units and the partially completed units are expressed in terms of fully completed units.

 

Cost per equivalent units = Total cost / total equivalent units

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