1. D Corp uses the FIFO method in its process costing system. This month, the beginning inventory in the first processing department consisted of 510 units. The costs and percentage completion of these units in beginning inventory were:

	Cost	Percent Complete
Materials costs	$6,800	80%
Conversion costs	$5,800	15%

A total of 9,000 units were started of which 7,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs	$136,800
Conversion costs	$322,800

The ending inventory was 70% complete with respect to materials and 80% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

ABC corp has 2 plants to produce a single product that sells for a single price: $153. Variable manufacturing costs at plant A is 78 whereas plant B is 81. Fixed manufacturing costs per unit are 34 for plant A and 10 for plant B. Variable marketing costs are 15 for plant A and 16 for plant B whereas fixed distribution costs per unit are 22 and 18 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

What is the margin of safety (based on normal days at capacity and no changes to inventory), in percent, for plant A?

1. D Corp uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 580 units. The costs and percentage completion of these units in beginning inventory were:

	Cost	Percent Complete
Materials costs	$6,800	80%
Conversion costs	$5,800	15%

A total of 9,000 units were started of which 7,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs	$136,800
Conversion costs	$322,800

The ending inventory was 70% complete with respect to materials and 80% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?