Reference no: EM132893424

Dustin Plastics, Inc., 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 2012 are:

Work in process, beginning inventory, 40% converted = 200 units

Units started during February = 600 units

Work in process, ending inventory: = 100 units

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 February = $2,000,000

Conversion costs added during February = $2,500,000

Problem 1: 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.

a. 800; 730

b. 800; 800

c. 800; 700

d. 600; 500