Reference no: EM132805551
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
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