Question

At the end of March?, MacTraneMacTrane?'s Mixing Department had total costs to account for of $770,475. Of this? amount, $305,000 related to direct materials? costs, while the remainder related to conversion costs. The department had 58,000 total equivalent units of direct materials and 46,000 total equivalent units of conversion costs for the month. Compute the cost per equivalent unit for direct materials and the cost per equivalent unit for conversion costs. Begin by selecting the appropriate labels for the? schedule, then complete each column of the table separately. ?(Round the cost per equivalent unit to the nearest? cent.)

	Direct Materials cost	Conversion Costs
	Cost per equivalent unit

Answer 1

given data

total costs incurred = $ 770475

direct material cost = $ 305000

total equivalent units of direct material = 58000

total equivalent units of conversion cost = 46000

conversion cost = total cost incurred - direct material cost

= 770475 - 305000

= $ 465475

mixing department
particulars	direct materials	conversion cost
total cost incurred	305000	4654765
total equivalent units	58000	46000
cost per equivalent units (working note)	5.25	10.11

working note :

cost per equivalent units = total cost incurred / total equivalent units

cost per equivalent units (direct material) = 305000 / 58000

= 5.25

cost per equivalent units (conversion cost) = 465475 / 46000

=10.11