The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $401,800. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 28,700 liters and 6,600 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Cost per equivalent unit of materials Cost per equivalent unit of conversion

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $401,800. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 28,700 liters and 6,600 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.

- **Cost per equivalent unit of materials**: $______
- **Cost per equivalent unit of conversion**: $______
Transcribed Image Text:The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $401,800. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 28,700 liters and 6,600 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. - **Cost per equivalent unit of materials**: $______ - **Cost per equivalent unit of conversion**: $______
Expert Solution
Step 1

Formula:

Cost per equivalent unit of Materials = Total cost of direct materials / Total equivalent units for direct materials 

Cost per equivalent unit of Conversion = Total cost of Conversion  / Total equivalent units for Conversion 

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education