Cost per Equivalent Unit

The following data is provided for the Rolling Department of Jabari Company:

DATA

Cost of direct materials $$3,081,000$

Conversion cost for the period $62,500$

Total equivalent units for:

Direct materials $3,900$ tons

Conversion $625$ tons

Formulas

Direct materials cost per equivalent unit

Conversion cost per equivalent unit

The cost of direct materials transferred into the Rolling Department of Jabari Company is $$3,081,000.$ The conversion cost for the period in the Rolling Department is $$62,500.$ The total equivalent units for direct materials and conversion are $3,900$ tons and $625$ tons, respectively.