Question
Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while
Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July. Number of lamps in beginning work in process Lamps transferred to finished goods Number of lamps in ending work in process June July 810 3,700 1,300 1,300. 2,820 800 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process are finished during the next month. Required: a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhea b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. Cost Categories Equivalent Units a. June: Body materials Wiring materials Labor & Overhead b. July: Body materials 2.320 Wiring materials 3,620 Labor & Overhead 3,070
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