Chapter 20 Process Costing Abraham Company uses process costing to account for its production costs. The company has two produc Problem 20-2 tion processes. Conversion is added evenly throughout each process. Direct materials are added at the Weighted avera beginning of the first process. Additional information for the first process follows. Cost per equiva During September, the first process transferred 80,000 units of product to the next process. Beginning costs assigned work in process consisted of 2,000 units that were 100% complete with respect to direct materials and 85% C2 C3 complete with respect to conversion of the units completed, 2,000 were from beginning work in process and 18,000 units were started and completed during the period. Beginning work in process had $58,000 of direct materials and $86,400 of conversion cost. At the end of September, the work in process inventory consists of 3.000 units that are 25% complete with respect to conversion. The direct materials cost added in September IS 5712,000, and conversion cost added is $1.980,000. The company uses the weighted-average method. Required For the first process: cermine the equivalent units of production with respect to (a) conversion and (b) direct materials, compute both the conversion cost and the direct materials cost per equivalent unit 3. Compute both conversion cost and direct un conversion cost and direct materials cost assigned to (a) units completed and trans- ferred out and (b) ending work in pre Check (2) CO per equivalen 13 $120.400