Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below.
1. Which of the following represents the computation of direct materials cost per equivalent unit?
- Total direct cost for the period divided by total equivalent units of direct materials.
- Total equivalent units of direct materials divided by total direct cost for the period.
- Total direct cost for the period divided by total units of direct materials.
- Total units of direct materials divided by total direct cost for the period.
2. What is the conversion cost per equivalent unit, when the total conversion cost for the period is $1,225 and the total units of packaged drinking water produced during the same period is 5,000 gallons (70 percent complete).
- $0.17 per gallon
- $0.35 per gallon
- $2.86 per gallon
- None of these choices are correct.