Question

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $901,600. TheDepartment M had 2,100 units 53% completed in process at the beginning of June, 12,700 units completed during June, and 900 u

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Answer #1

1.

Cost per equivalent unit for materials (901,600/32,200) 28
Cost per equivalent unit for conversion (395,000/7,900) 50

2.

Number of equivalent units of production for conversion costs

= 12,700 - (2100*53%) + (900*27%)

= 12,700 - 1113 + 243

= 11,830

Option B

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