Hannah Skincare Inc. transfers direct materials into the the Packaging Department. The cost of direct materials transferred into the department is $25,000. The conversion cost for the period in the Packaging Department is $6,300. The total equivalent units for direct materials is 60,000 ounces. The total equivalent units for conversion is 55,500 ounces. Determine the direct materials cost per equivalent unit and conversion cost per equivalent unit.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 18EA: Prepare the journal entry to record the transfer of 3,000 units from the packaging department to...
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Hannah Skincare Inc. transfers direct materials into the
the Packaging
Department. The cost of direct materials transferred into the department is
$25,000. The conversion cost for the period in the Packaging Department is
$6,300. The total equivalent units for direct materials is 60,000 ounces. The
total equivalent units for conversion is 55,500 ounces. Determine the direct
materials cost per equivalent unit and conversion cost per equivalent unit.
Transcribed Image Text:Hannah Skincare Inc. transfers direct materials into the the Packaging Department. The cost of direct materials transferred into the department is $25,000. The conversion cost for the period in the Packaging Department is $6,300. The total equivalent units for direct materials is 60,000 ounces. The total equivalent units for conversion is 55,500 ounces. Determine the direct materials cost per equivalent unit and conversion cost per equivalent unit.
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