question archive Department A of Green Shed, Inc
Department A of Green Shed, Inc
Subject:AccountingPrice:2.86 Bought9
Department A of Green Shed, Inc. incurred $240,000 in direct material costs and $65,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,215 and 715, respectively. The cost per equivalent unit of production for direct materials is ________.
$124.35 per EUP
$158.03 per EUP
$90.91 per EUP
$197.53 per EUP
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Option (4) $197.53 per EUP
Step-by-step explanation
Cost per EUP for direct materials = Cost incurred for direct material / EUP for direct materials
= $240,000 / 1,215
= $197.53 per EUP
Hence, option (4) $197.53 per EUP is correct.
