Answer:
(a) $750 per ton
(b) $120 per ton
Explanation:
Given that,
Cost of direct materials transferred = $3,000,000
Total equivalent units for direct materials = 4,000 tons
Conversion cost for the period = $462,600
Total equivalent units for conversion = 3,855 tons
Direct materials cost per equivalent unit:
= Cost of direct materials transferred ÷ Total equivalent units for direct materials
= $3,000,000 ÷ 4,000 tons
= $750 per ton
Conversion costs per equivalent unit:
= conversion cost for the period ÷ Total equivalent units for conversion
= $462,600 ÷ 3,855 tons
= $120 per ton