The cost of direct materials transferred into the Rolling Department of Keystone Steel Company is $510,000

The cost of direct materials transferred into the Rolling Department of Keystone Steel Company is $510,000. The conversion cost for the period in the Rolling Department is $81,200. The total equivalent units for direct materials and conversion are 8,500 tons and 8,120 tons, respectively. Determine the direct materials and conversion costs per equivalent unit.


Answer:


Equivalent units of direct materials: 
Equivalent units of conversion: 
$510,000 
8,500 

$81,200 
8,120 

= $60 per ton 
= $10 per ton