DUB Nation Company employs FIFO process costing system regarding its 3-point enhancer product. The following data are provided for the year ended December 31, 2016: a. It is the company's policy to add conversion cost evenly throughout the period while 4/5 of the direct materials are added at the start of the process while the remaining direct materials are added at the end of the process. b. Ten percent of units started are normally spoiled which all come from the units started. c. The January 1, 2016 work-in-process inventory consists of 20,000 units with the following costs: 400,000-direct material, 500,000-direct labor and 100,000-factory overhead. The beginning inventory is 72% complete as to conversion cost. The total manufacturing costs added during the year consists of PIM-direct material, 1.200,000-direct labor and 300,000-factory overhead. e. The units started during the year totaled 80,000 units while the units completed totaled 60,000 units. f. The December 31, 2016 work-in-process inventory consists of 10,000 units which is 20% incomplete as to conversion cost. g. The inspection point occurs when the percentage of completion is 75% as to conversion cost. Req: What is the cost per equivalent unit for direct material and conversion cost, respectively?

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DUB Nation Company employs FIFO process costing system regarding its 3-point enhancer product. The following data are provided for the year ended December 31, 2016:
a. It is the company's policy to add conversion cost evenly throughout the period while 4/5 of the direct materials are added at the start of the process while the remaining direct materials are added at the end of the process.
b. Ten percent of units started are normally spoiled which all come from the units started.
c. The January 1, 2016 work-in-process inventory consists of 20,000 units with the following costs: 400,000-direct material, 500,000-direct labor and 100,000-factory overhead. The beginning inventory is 72% complete as to conversion cost. The total manufacturing costs added during the year consists of PIM-direct material, 1.200,000-direct labor and 300,000-factory overhead.
e. The units started during the year totaled 80,000 units while the units completed totaled 60,000 units.
f. The December 31, 2016 work-in-process inventory consists of 10,000 units which is 20% incomplete as to conversion cost.
g. The inspection point occurs when the percentage of completion is 75% as to conversion cost.
Req: What is the cost per equivalent unit for direct material and conversion cost, respectively?

 

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