Drop down options for requirement 1 & 2

Cullets purchased

Ending Inventory, cullets

Ending Inventory, silicone

Equivalent units, cullets

Equivalent units, polypropylene

Equivalent units, silicone

Polypropylene used

Silicone purchased

Total conv, costs incurred

Total equivalent conv. costs

The Drink Up Company is dedicated to making products that meet the needs of customers in a sustainable manner. Drink Up is best known for its KLN water bottle, which is a BPA-free, dishwasher- safe, bubbly glass bottle in a soft silicone sleeve. The production process consists of three basic operations. In the first operation, the glass is formed by remelting cullets (broken or refuse glass). In the second operation, the glass is assembled with the silicone gasket and sleeve. The resulting product is finished in the final operation with the addition of the polypropylene cap. Consulting studies have indicated that of the total conversion costs required to complete a finished unit, the forming operation requires 50%, the assembly 30%, and the finishing 20%. The following data are available for March 2017 (there is no opening inventory of any kind): $ Cullets purchased Silicone purchased Polypropylene used Total conversion costs incurred Ending inventory, cullets Ending inventory, silicone Number of bottles completed and transferred Inventory in process at the end of the month: Units formed but not assembled Units assembled but not finished 77,300 26,800 4,200 78,300 7,000 3,000 14,000 2,000 3,000 1. What is the cost per equivalent unit for conversion costs for KLN bottles in March 2017? 2. Compute the cost per equivalent unit with respect to each of the three materials: cullets, silicone, and polypropylene. 3. What is the cost of goods completed and transferred out? 4. What is the cost of goods formed but not assembled? 5. What is the cost of goods assembled but not finished? Requirement 1. What is the cost per equivalent unit for conversion costs for KLN bottles in March 2017? Use a formula to solve for the cost per equivalent unit for conversion costs. (Round the cost per equivalent unit amount to the nearest cent. Conv. = conversion) Cost per equivalent unit, conv. costs Requirement 2. Compute the cost per equivalent unit with respect to each of the three materials: cullets, silicone, and polypropylene. Begin by using a formula to solve for the cost per equivalent unit with respect to cullets. (Round the cost per equivalent unit amount to th = Cost per equiv. unit, cullets Use a formula to solve for the cost per equivalent unit with respect to silicone. (Round the cost per equivalent unit amount to the nearest = Cost per equiv. unit, silicone Use a formula to solve for the cost per equivalent unit with respect to polypropylene. (Round the cost per equivalent unit amount to the n = Cost per equivalent unit, polypropylene Requirement 3. What is the cost of goods completed and transferred out? Cost of goods completed and transferred Direct materials Conversion costs Total Requirement 4. What is the cost of goods formed but not assembled? Cost of goods formed but not assembled Direct materials Conversion costs Total Requirement 5. What is the cost of goods assembled but not finished Cost of goods assembled but not finished Direct materials Conversion costs Total