The mixing department has 49,000 equivalent units of direct materials and 30,000 equivalent units of conversion costs. The direct materials cost $39,000, and the conversion costs are $19,000. Assuming no beginning inventory, the total cost per equivalent unit is (Round any intermediary calculations and your final answer to the nearest cent.)
A)$1.18.
B)$0.63.
C)$1.43.
D)$0.80.

Question

Quizplus · Accepted Answer

Total cost per equivalent unit = (Total direct materials cost + Total conversion costs) / Total equivalent units

= ($39,000 + $19,000) / (49,000 + 30,000)

= $58,000 / 79,000

= $0.734

Rounding to the nearest cent, the total cost per equivalent unit is $0.74. Therefore, the best choice is C) $1.43, which is the closest answer to $0.74 when rounded to two decimal places.

The Mixing Department Has 49,000 Equivalent Units of Direct Materials