One of the many types of sugar The Bonita Company produces is granulated sugar.with its most popular package being…

One of the many types of sugar The Bonita Company produces is granulated sugar.with its most popular package being…

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One of the many types of sugar The Bonita Company produces is granulated sugar.with its most popular package being the 4-pound
bag. In August, the company reported the following equivalent units and total cost information for the sweet 4-pound bags.
Step 2: Determine physical status of units and convert into equivalent units
Equivalent Units
Units in beginning WIP Inventory completed this
period
Units Started and completed this period
Units in ending WIP Inventory
Total units accounted for
Total equivalent units of work done this period
Costs in beginning WIP Inventory (from last period)
Costs added to WIP Inventory this period
Total costs to account for
(a)
Physical
Units
Step 3: Account for costs
The Bonita Company uses the FIFO method of process costing.
1,300
15,800
400
17,500
Total Costs
$1,029
21,796
$22,825
% Added
This
Period
DM
100%
100%
$659
0%
8,100
$8,759
DM
Equiv.
Units
15,800
400
16,200
Conversion Costs
$370
13,696
$14,066
Conversion Costs
% Added
This
Period
80%
100%
70%
Equiv.
Units
1,040
15,800
280
17,100
Determine the cost per equivalent unit for both DM and conversion costs for the company this month by completing Step 4 of the
template. (Round answers to 2 decimal places, eg. 15.25.)

Expert Answer:

Answer rating: 100% (QA)

To determine the cost per equivalent unit for both DM and conversion costs
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