1. Scientists at Anschultz Laboratories, Inc. have just perfected Dentalite, a l
ID: 2376524 • Letter: 1
Question
1. Scientists at Anschultz Laboratories, Inc. have just perfected Dentalite, a liquid substance that dissolves tooth decay. The substance, which is generated by a complex process involving five departments, is very expensive. Cost and equivalent unit data for the latest week are as follows (units are in ounces):
Direct Materials Costs Conversion Costs
Equivalent Equivalent
Dept. Dollars Units Dollars Units
A $12,000 1,000 $33,825 2,050
B 21,835 1,983 13,065 1,005
C 23,896 1,030 20,972 2,140
D - - 22,086 2,045
E - - 15,171 1,945
From these data, compute the unit cost for each department and the total unit
cost of producing one ounce of Dentalite.
Explanation / Answer
the unit cost for each department
A -- unit cost = (12,000/1,000)+(33,825/2,050) = $ 28.5
B --- unit cost = (21835/1983)+(13065/1005) = $ 24.01
C---- unit cost = ( 23896/1030)+(20972/2140) =$ 33
D --- unit cost = 22086/2045 = $ 10.8
E --- unit cost = 15171/1945 = $ 7.8
total unit cost of producing one ounce of Dentalite = 28.5 + 24.01+ 33 +10.8 + 7.8 = $ 104.11
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