Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Data for department A for February 2012 are: Work in process beginning inventory

ID: 2349589 • Letter: D

Question

Data for department A for February 2012 are:
Work in process beginning inventory, 40% converted-----200 units
Units started during February ----------------------------------600 units
Work in process ending inventory
30% complete as to conversion costs
100% complete as to materials
Costs for the department A for February 2012 are:
Work in process beginning inventory
Direct materials ---------------------------------------------200,000
Conversion costs---------------------------------------------200,000
Direct materials costs added during Feb----------------------2,000,000
Conversion costs added during Feb----------------------------2,500,000

What were the equivalent units of direct materials and conversion costs, respectively, at the end of February? Assume Dustin Plastics, Inc., uses the weighted-average process costing method.

Explanation / Answer

Data for department A for February 2012 are:
Work in process beginning inventory, 40% converted-----200 units
Units started during February ----------------------------------600 units
Work in process ending inventory
30% complete as to conversion costs
100% complete as to materials
Costs for the department A for February 2012 are:
Work in process beginning inventory
Direct materials ---------------------------------------------200,000
Conversion costs---------------------------------------------200,000
Direct materials costs added during Feb----------------------2,000,000
Conversion costs added during Feb----------------------------2,500,000

What were the equivalent units of direct materials and conversion costs, respectively, at the end of February? Assume Dustin Plastics, Inc., uses the weighted-average process costing method.

Equivalent units of direct materials under weighted average = units completed + equivalent units in ending inventory = 700 + 100=800

====================

Conversion costs = 700 + (100 30%) = 730