The cost of direct materials transferred into the Filling Department of Savannah Lotion Company is $13,300

The cost of direct materials transferred into the Filling Department of Savannah Lotion Company is $13,300. The conversion cost for the period in the Filling Department is $3,100. The total equivalent units for direct materials and conversion are 38,000 ounces and 38,750 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit.


Answer:









Equivalent units of direct materials: 
Equivalent units of conversion: 
$13,300 
38,000 

$3,100 
38,750 
= $0.35 per ounce 
= $0.08 per ounce