Calculate the cost per equivalent unit in the blending department given the following information: Total Direct...

Calculate the cost per equivalent unit in the blending department given the following information:

Total Direct Materials Conversion

Completed 100% 10,000 10,000 10,000

WIP:

Run A 3,000 2,000 (67%) 1,500 (50%)

Run B 5,000 4,500 (90%) 0 (0%)

Run C 20,000 10,000 (50%) 8,000 (40%)

Total Costs:

Direct Materials: $60,000

Conversion: $50,000

Solutions

Expert Solution

All working forms part of the answer
Calculation of Equivalent Units

	Equivalent units for
Equivalent Units:	Direct material	Conversion cost
Completed	10000	10000
Run A	2000	1500
Run B	4500	0
Run C	10000	8000
Total Equivalent Units	26500	19500

Answer: calculation of Cost per Equivalent Units:

	Cost	Equivalent Units	Cost per Equivalent Units - ANSWER
	[A]	[B]	[C = A/B]
Direct Material Cost	$ 60,000.00	26500	$ 2.26
Conversion Cost	$ 50,000.00	19500	$ 2.56
TOTAL	$ 1,10,000.00		$ 4.83

ekkarill92 answered 1 year ago

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