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The Cost of Direct Materials Transferred into the Bottling Department

question 24

Essay

The cost of direct materials transferred into the Bottling Department of 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.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

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