Solution: I. Step 3: Unit cost Unit materials cost t Unit conversion cost a ($1,500 $18,900)/ 120,000+ (S525 S4,575)/102,000 $0.17 $0.05 $0.22 per ounce
2. Step 4: Valuation of Inventories Using unit cost information and the information from the equivalent units schedule (Step 2 of Cornerstone 6.9)