Evaluate direct materials and conversion costs

Assignment Help Managerial Accounting

Reference no: EM133457

Question :

The John Clock Shop manufactures clocks on a highly automated assembly line. Its costing system use two cost categories, conversion costs and direct materials. Every product must pass through the Assembly Department and the Testing Department. Direct materials are added at the starting of the production process. Conversion costs are allocated consistently throughout production. John Clock Shop uses weighted-average costing.

Data for the Assembly Department for June 20x3 are:

Work in process, starting inventory 250 units

Direct materials (100% complete)

Conversion costs (50% complete)

Units started during June 800 units

Work in process, ending inventory: 150 units

Direct materials (100% complete)

Conversion costs (75% complete)

Costs for June 20x3:

Work in process, beginning inventory:

Direct materials $180,000

Conversion costs $270,000

Direct materials costs added during June $1,000,000

Conversion costs added during June $1,000,000

What are the corresponding units for direct materials and conversion costs, correspondingly, for June?

a. 1,200.5 units; 1,160.64 units b. 1,050 units; 1,012.5 units c. 1,050 units; 1,050 units d. 962 units; 990 units

Reference no: EM133457

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