Which of the following formulae is used to calculate the cost per equivalent unit of production (EUP) for direct materials? A) Cost per EUP for direct materials = Total conversion costs ÷ Equivalent units of production for direct materials B) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for direct materials C) Cost per EUP for direct materials = Total transferred in costs ÷ Equivalent units for transferred in D) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for conversion costs

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 17MC: Under absorption costing, a unit of product includes which costs? A. direct material, direct labor,...
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Which of the following formulae is used to calculate the cost per equivalent unit of production (EUP) for direct materials?

A) Cost per EUP for direct materials = Total conversion costs ÷ Equivalent units of production for direct materials

B) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for direct materials

C) Cost per EUP for direct materials = Total transferred in costs ÷ Equivalent units for transferred in

D) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for conversion costs

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