Question

1. The Filling Department of Eve Cosmetics Company had 2,200 ounces in beginning work in process inventory (70% complete). During the period, 36,100 ounces were completed. The ending work in process inventory was 2,500 ounces (10% complete).

What are the total equivalent units for conversion costs?

If required, round to the nearest unit.

__________ units

2.

The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $99,500. The conversion cost for the period in the Filling Department is $194,360. The total equivalent units for direct materials and conversion are 39,800 ounces and 45,200 ounces, respectively.

Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.

Direct materials cost per equivalent unit:	$ ____per ounce
Conversion costs per equivalent unit:	$ ____ per ounce

Answer 1

Answer-1)- The total equivalent units for conversion costs are =36350.

Explanation-

Statment of Equivalent Production units
Under Weighetd-Average Method
Particluars	Input Units	Particulars	Output Units	Equivalent Production
				%	Conversion Costs
Opening Work in process	2200	Units completed (Transferred to next process)	36100	100	36100
Units introduced	36400
		Closing work in process	2500	10	250
Total	38600		38600		36350

2)- Direct materials cost per equivalent unit = $99500/39800 ounces

= $2.5 per ounce

Conversion costs per equivalent unit = $194360/45200 ounces

= $4.3 per ounce