869 LOS Assigning Costs: Average Costing Method SE9 9. Using the data in SE4, SE5, SE7, and SES and assuming that Pearl Glaze uses the average costing metho d, assign costs to the units completed and transferred out and to the units in ending inventory for July Equivalent Production: Average Costing Method SE10. Real Company adds direct materials at the beginning of its production process Los and adds conversion costs uniformly throughout the process. Given the following infor- mation from Real's records for July, compute the current period's equivalent units of production for direct materials and conversion costs using the average costing method. Units in beginning inventory Units started during the period Units partially completed in prior period Percentage of completion of 2,000 13,000 500 40% for conversion costs 70% for conversion costs 100% for direct materials; beginning inventory Percentage of completion of ending work in 100% for direct materials; process inventory EXERCISES: SET A Process Costing Versus Job Order Costing E1A. Indicate whether the manufacturer of each of the following products should use a job order costing system or a process costing system to accumulate product costs: LO1 1. paint 2. tailor-made tuxedo 3. soft drinks 4. soy milk 5. cups printed with your school insignia 6. water slide for a theme park 7. plastic 8. posters for a concert Use of Process Costing Information E2A. ACCOUNTING CONNECTION Mom's Bakery makes a variety of baked goods for distribution to grocery stores in the area. The company uses a standard manufacturing process for all items except special-order birthday cakes. It currently uses a process cost- ing system. The owner of the company has the following questions 2