Reference no: EM132666860

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% completed as to conversion costs

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

Problem 1: 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.

Group of answer choices

Option 1: 800; 700

Option 2: 1,000; 1,000

Option 3: 1,000; 900

Option 4: 1,000; 930