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Heinz Bottling Company Produces Various Glass and Plastic Containers and Uses

question 127

Multiple Choice

Heinz Bottling Company produces various glass and plastic containers and uses a process costing system. The following information relates to production in the Formulating Department during January for the company's 2-quart size glass jars:
.Beginning Work in Process inventory: 4,500 units, 85% complete as to conversion costs
.Beginning Work in Process inventory-cost of direct materials, $18,000
.Beginning Work in Process inventory-costs of conversion, $14,000
.Number of jars started in January: 270,000 units
.Ending Work in Process inventory: 2,000 units, 35% complete as to conversion
.Direct materials added during January: $78,075
.Conversion costs incurred during January: $40,700
Direct materials are added at the beginning of the Formulating process, and conversion costs are incurred uniformly throughout production. How much is the cost per equivalent unit for materials?

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