Question
21. On October 1, Clifford Manufacturing had 10,000 units in its Mixing Department. These units were 75 percent complete with respect to direct materials requirements
21. On October 1, Clifford Manufacturing had 10,000 units in its Mixing Department. These units were 75 percent complete with respect to direct materials requirements and 60 percent complete with respect to their conversion requirements. During October, the Mixing Department started and completed 80,000 units. The departments direct material costs in October totaled $1,778,000, and its conversion costs totaled $2,688,000. On October 31, there remained 8,000 units in ending inventory that were 80 percent complete with respect to direct materials, and 70 percent complete with respect to conversion.
a. Compute the Mixing Departments cost per equivalent unit of direct materials in October.
b. Compute the Mixing Departments cost per equivalent unit of conversion in October.
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