1. A pizza company produces frozen pizzas in three departments:assembly, freezing, and packaging.In assembly, crust ingredients are added at the beginning of the process.After the crust is made, the sauce, cheese, and toppings are added at the end of the process.Conversion costs are added evenly.Data for the assembly department includes:

Beginning WIP inventory

0 units

Units started

22,000 units

Units completed/transferred to freezing

19,800 units

Ending WIP (70% through assembly)

2,200 units

Crust ingredients added

$31,000

Cheese added

$16,000

Sauce and toppings added

$8,000

Direct labor

$22,216

Manufacturing overhead

$5,486

Calculate:

a.The cost per equivalent unit for crust ingredients'

b.The cost per equivalent unit for cheese, sauce, and toppings.

c.The cost per equivalent unit for conversion costs

The following information is provided by Abbott Corporation:

WIP inventory, January 1

0 units

Units started

12,000

Units completed and transferred out

8,000

WIP inventory, December 31

4,000

Direct materials

$26,700

Direct labor

$15,400

Manufacturing overhead

$9,000

The units in ending WIP inventory were 80% complete for materials and 40% complete for conversion costs. Calculate the total equivalent units for direct materials.

a.Calculate the total equivalent units for direct materials.

b.Calculate equivalent units for conversion costs.

Direct materials are added at the beginning of the process and conversions costs are uniformly applied.

Other details include:

WIP beginning (40% for conversion)

22,500 units

Units started

130,000 units

Units completed and transferred out

124,000 units

WIP ending (60% for conversion)

28,500 units

Beginning WIP direct materials

$51,900

Beginning WIP conversion costs

$20,174

Costs of materials added

$430,000

Costs of conversion added

$310,000

Calculate:

a.The total equivalent units for direct materials

b.The total equivalent units for conversion costs

c.The cost per equivalent unit for direct materials

d.The cost per equivalent unit for conversion costs

e.The total cost of units completed and transferred out

f.The total cost of units remaining in ending WIP