The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. Costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. The equivalent units of production (EUP) for the period were 9,000 for direct materials and 6,000 for conversion. The costs per EUP were:

$2 ; $20

Explanation:

Given the following :

Beginning work in process:

Direct material = $3000

Direct labor = $10,000

Factory overhead = $10,000

Cost incurred:

Direct material cost =$15,000

Conversion cost =$100,000

Equivalent unit of production:

Direct material = 9000

Conversion = 6000

Cost per equivalent unit of production :

Direct material:

(Beginning work in process + cost incurred) / EUP direct material

$(3000 + 15,000) / 9000

$18,000 / 9000 = $2 per EUP

CONVERSION:

(Direct labor + direct overhead) in beginning WIP

$(10,000 + 10,000) = $20,000

Conversion cost incurred = $100,000

$(100,000 + 20,000) / EUP conversion

$120,000 / 6000 = $20 EUP

The costs per EUP for direct materials = $2 per EUP

The costs per EUP for conversion cost = $20 per EUP

Explanation:

The total cost for direct materials is sum of the cost for direct materials at the beginning of the work and the cost for direct materials incurred during the period.

total cost for direct materials = $3000 + $15000 = $18000

The costs per EUP for direct materials =  total cost for direct materials / equivalent units of production (EUP) for direct materials = $18000 / 9000 = $2 per EUP

The total conversion cost for is sum of the conversion cost at the beginning of the work and the conversion cost incurred during the period.

Conversion cost at the beginning of the work = direct labor costs + factory overhead costs = $10000 + $10000 = $20000

Total conversion cost = $20000 + $100000 = $120000

The costs per EUP for conversion cost = Total conversion cost  / equivalent units of production (EUP) for conversion = $120000 / 6000 = $20 per EUP

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answer///supply is elastic, and demand is inelastic;