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Question - Determining the Cost per Equivalent Unit of Input Resource
On March 1, Nina Manufacturing had 5,000 units in its Molding Department. These units were 60 percent complete with respect to direct materials requirements and 40 percent complete with respect to their conversion requirements. During March, the Molding Department started and completed 30,000 units. Direct materials costs in March incurred in the Molding Department totaled $405,600, whereas March conversion costs totaled $504,000. On March 31, there remained 2,000 units in ending inventory that were 90 percent complete with respect to direct materials, and 30 percent complete with respect to conversion.
a. Compute the Molding Department's cost per equivalent unit of direct materials in March.
b. Compute the Molding Department's cost per equivalent unit of conversion in March.
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