q 6

Strung Out Guitar Company manufactures low-end guitars on an automated assembly line. It utilizes two cost categories direct materials and conversion costs. Each guitar must pass through the Assembly Department and the Testing Department Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted - average costing Data for the Assembly Department are Work in process, beginning inventory Direct materials (100% complete) Conversion costs (40% complete) 120 units Units started during April Work in process, ending inventory Direct materials (100% complete) 740 units 200 units Units started during April Work in process, ending inventory Direct materials (100% complete) Conversion costs (82% complete) 740 units 200 units Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during April Conversion costs added during April $180,000 $270,000 $1,000,000 $1,000,000 What are the equivalent units for direct materials and conversion costs at Strung Out Guitar Company, respectively? O A. 1,050 units: 1,012 5 units B. 962 units, 990 units O C. 990 units and 962 units OD. 860 units, 824 units O E. 1,050 units, 887 5 units