Cornerstone Exercise 6.6 (Algorithmic)

Nonuniform InputsApeto Company produces premium chocolate candy bars. Conversion costs are added uniformly. For February, EWIP is 30 percent complete with respect to conversion costs. Materials are added at the beginning of the process. The following information is provided for February:

Physical flow schedule:

Units to account for:

Units in BWIP0

Units started70,000

Total units to account for70,000

Units to account for:

Units completed:

From BWIP 0

Started and completed 48,00048,000

Units in EWIP 22,000

Total units accounted for 70,000

Inputs

Direct Materials Conversion Costs $31,500$54,600Required:

1. Calculate the equivalent units for each input category.

Equivalent Units Direct Materials Conversion

2. Calculate the unit cost for each category and in total. If required, round your answers to the nearest cent.

Unit direct materials cost$ Unit conversion cost$ Total unit cost$

3. What if a different type of materials is also added at the end of the process (a candy wrapper), costing $4,800?

Calculate the new unit cost. If required, round your answer to the nearest cent.

$ per unit