Cost per Equivalent Unit

The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Company is $$583,200.$ The conversion cost for the period in the Rolling Department is

$$269,500.$ The total equivalent units for direct materials and conversion are $2,700$ tons and $4,900$ tons, respectively.

Determine the direct materials and conversion costs per equivalent unit.

Direct materials cost per equivalent unit:

q

per ton

Conversion cost per equivalent unit:

q

per ton