80.2K

Verified Solution

Link Copied!

AdPan Pty Ltd manufactures play-stations. The costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming Department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. AdPan uses weighted-average process costing method.

The following information is available for the month of October 2021 for the Assembly Department.

Work-in-process (WIP), beginning inventory 400 units

Conversion costs (40% complete)

Units started during October 1,200 units

Work-in-process (WIP), ending inventory: 200 units

Conversion costs (60% complete)

The cost details for the month of October are as follows:

Work-in-process (WIP), beginning inventory:

Direct materials $420,000

Conversion costs $310,000

Direct materials costs added during October $960,000

Conversion costs added during October $1,090,000

What are the equivalent units for direct materials and conversion costs, respectively, for the month of October?

	a.	1,200 units; 200 units
	b.	1,400 units; 320 units
	c.	1,400 units; 1,400 units
	d.	1,600 units; 1,520 units
	e.	None of the answers.

Answer & Explanation Solved by verified expert

See Answer