Executive Designs began making high-quality office furniture in January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting department totaled $600,000, and conversion costs totaled $590,000. Ending inventory on January 31 consisted of 4,000 partially processed component kits. These units were 100 percent complete with respect to direct materials, but only 20 percent complete with respect to conversion.

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Chapter 18 4. 10.00 points Executive Designs began making high-quality office furniture in January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then translerred to the Finishing Department for trimming and assembly. During its irst month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting Department totaled $600,000, and conversion costs totaled $590,000. Ending imventory on January 31 consisted of 4,000 partially processed component kits. These units were 100 percent complete with respect to direct materials, but only 20 percent complete with respect to conversion a. Compute the number of component kits transferred from the Cutting Department to the Finishing Department in January Number of component transferred 11,000 b. Compute the equivalent units of input resources for the Cutting Department in January. Equivalent Units 5,000 11,800 Direct materials c. Compute the cost per equivalent unit of input resource for the Cutting Department in January. Direct materials Conversion Cost per Unit 40 50