A food processing company begins the period with 10,000 units in process, incurs $100,000 in direct materials costs, $150,000 in conversion costs, and completes 20,000 units during the period.

• Requirements:
  • Calculate the equivalent units of production for direct materials and conversion costs.
  • Prepare a cost per equivalent unit schedule using the weighted average method.
  • Allocate costs to units completed and ending work in process.
  • Discuss the advantages of process costing in food processing industries.