For the month of September, Florida, Inc., incurs a direct materials cost of $11,250 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $5,700 with 80% completed. If the direct materials cost per equivalent unit was $0.90 in August and the conversion cost per equivalent unit was $1.10 per gallon in August, what is the difference in the direct materials cost per equivalent unit between the 2 months? a. $2.10 h $2.50

For the month of September, Florida, Inc., incurs a direct materials cost of $11,250 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $5,700 with 80% completed. If the direct materials cost per equivalent unit was $0.90 in August and the conversion cost per equivalent unit was $1.10 per gallon in August, what is the difference in the direct materials cost per equivalent unit between the 2 months? a. $2.10 h $2.50

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 4CE: During October, McCourt Associates incurred total production costs of 60,000 for copyediting...

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For the month of September, Florida, Inc., incurs a direct materials cost of $11,250 for
7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs
conversion costs of $5,700 with 80% completed. If the direct materials cost per
equivalent unit was $0.90 in August and the conversion cost per equivalent unit was
$1.10 per gallon in August, what is the difference in the direct materials cost per
equivalent unit between the 2 months?
a. $2.10
b. $2.50
c. $0.60
d. $0.90

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