Question 1

Aves Treats, Inc. produces bird seeds. All direct materials used in the production process are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is mixed and packaged. Aves Treats uses process costing and had the following unit production information available for the months of June and July:

June July Number of units in beginning work in process inventory 0 150 Number of units started during the month 750 950 Total number of units transferred to finished goods 600 850