Jeffery Ltd uses a process costing system. Its spackling department had no beginning work in process inventory. The department added direct materials of $200,000 and incurred conversion costs of $150,000 during the period. If 15,000 units were completed and transferred out to the next department, and there were 5,000 equivalent units in ending work in process inventory, calculate the cost per equivalent unit for direct materials and conversion costs.
a) Direct Materials Cost per Equivalent Unit
b) Conversion Costs per Equivalent Unit