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jerico jerico
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Posts: 4603
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9 years ago
Audrey Auto Accessories manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Department A for February 2015 are:
   Work in process, beginning inventory, 40% converted   200 units
   Units started during February   800 units
   Work in process, ending inventory:   100 units
   30% complete as to conversion costs
   100% complete as to materials

Costs for the Department A for February 2015 are:
   Work in process, beginning inventory:
   Direct materials   $600,000
   Conversion costs   $150,000
   Direct materials costs added during February   $4,000,000
   Conversion costs added during February   $2,250,000

What were the equivalent units of direct materials and conversion costs, respectively, at the end of February? Assume Audrey uses the weighted-average process costing method.
A) 1,000; 930
B) 1,000; 1,000
C) 1,000; 900
D) 800; 700
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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9 years ago
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jerico Author
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9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
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9 years ago
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