Q1. For the period, if beginning WIP is 1,000 units, ending WIP 800 units (mat 100%, conversion 50%), and 10,000 units completed and transferred out:

a. How many units were started new during the period?

b. The beginning WIP consists of material $1,000 and conversion $600, During the period the department added $12,000 material and $8,000 conversion to the process. Calculate the material equivalent and conversion equivalent units for the period. Also calculate the cost to complete one unit for the period.

Q2. Define equivalent units and how and why it is applied in process costing.