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The Cost of Direct Materials Transferred into the Bottling Department

question 173

Essay

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $28,072. The conversion cost for the period in the Bottling Department is $10,275. The total equivalent units for direct materials and conversion are 63,800 and 68,500 respectively. Determine the direct materials and conversion cost per equivalent unit.
Round answers to nearest cent.


Definitions:

Income Change

A variation in an individual's or organization's income level due to factors such as economic conditions, employment status changes, or business profitability adjustments.

Variable Costing

Variable costing is an accounting method that only considers variable costs (costs that change with production levels) when calculating the cost of goods sold or produced.

Total Product Cost

Total product cost includes all the direct and indirect costs incurred to produce a product, encompassing materials, labor, and overhead.

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