Question 18.5: The cost of direct materials transferred into the Bottling D...

The cost of direct materials transferred into the Bottling Department of Rocky Springs Beverage Company is $22,800.
The conversion cost for the period in the Bottling Department is $8,790. The total equivalent units for direct materials and conversion are 57,000 liters and 58,600 liters, respectively. Determine the direct materials and conversion costs per equivalent unit.

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Direct Materials Cost per Equivalent Unit = \frac{\$22,800}{57,000  liters} = $0.40 per liter 

Conversion Cost per Equivalent Unit = \frac{\$8,790}{58,600  liters} = $0.15 per liter 

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