1. Ex Company produces a single product. Material A is added at the start of the production process and packaging material B is added at the end of the process. Conversion costs are incurred uniformly throughout the process. Production data for 2007 was as follows:

Beginning work-in-process inventory (60% complete in conversion) 1,000 units

Units started 17,000 units

Units completed ?

Ending work-in-process inventory (50% complete in conversion) 2,000 units

Using a first-in, first-out (FIFO) process costing system, the equivalent units in 2007 are

	Material A	Material B	Conversion
a.	18,000	16,000	16,800
b.	16,000	16,000	16,400
c.	16,000	16,000	16,000
d.	17,000	16,000	16,400

e. None of the above

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Answer the following 2 questions using the information below:

The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing.

Data for the Assembly Department for April 2008 are:

Work in process, beginning inventory:	400 units
===Direct materials (100% complete)
===Conversion costs (40% complete)
Units started during April	1,200 units
Work in process, ending inventory:	250 units
===Direct materials (100% complete)
===Conversion costs (80% complete

Costs for April 2008:

Work in process, beginning inventory:
===Direct materials	$100,000
===Conversion costs	$300,000
Direct materials costs added during April	$700,000
Conversion costs added during April	$1,250,000

2. What amount of direct materials costs are assigned to the ending Work-in-Process account for April?

3. What amount of direct materials cost are assigned to the transferred out units for April?

SHOW YOUR CALCULATIONS