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 2017 are:

Costs for the Department A for February 2017 are:

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.

Question

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 2017 are:

Costs for the Department A for February 2017 are:

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.

Quizplus · Accepted Answer

Equivalent units of direct materials under weighted average = units completed + equivalent units in ending inventory = 1000 + 300 = 1300 equivalent units
Conversion costs = 1000 + (300 × 25%)= 1075 equivalent units

Audrey Auto Accessories Manufactures Plastic Moldings for Car Seats