1. Taft Company manufactures two products: Solvent A and Solvent X. Solvent A is a high-end product that requires more expensive materials than solvent X and is produced at smaller volume. The two products go through the two production departments in essentially the same conversion processes. There is no work-in-process inventory for either product.

Taft uses an operation costing system that assigns materials cost to the specific product for which the underlying materials are used and assigns conversion costs to all products evenly as each product undergoes the same process in each production department.

The production and cost data are available for July:

		Solvent A	Solvent X
	Total	5,000 Units	7,000 Units
Materials:
Mixing	$290,000	$140,000	$150,000
Packaging	100,000	45,000	55,000
Total materials cost	$390,000	$185,000	$205,000
Conversion:
Mixing	$144,000
Packaging	180,000
Total conversion cost	$324,000

Required:

Determine the unit cost for Solvent A and Solvent X

.

	Total	Solvent A	Solvent X
		5.000 units	7,000 units