Reference no: EM132762074
Ougnitch Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for February 2012 are:
Work in process, beginning inventory, 200 units.
Units started during February 600 units
Work in process, ending inventory, 100 units
30% be as to conversion costs
100% be as to materials
Costs:
Work in process, beginning inventory:
Direct materials $200,000
Conversion costs $200,000
Direct materials costs added during February $2,000,000
Conversion costs added during February $2,500,000
Problem 1: What is the unit cost per equivalent unit for conversion costs?
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