Question 8

Timekeeper Inc. manufactures clocks on highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing.

What are the equivalent units for direct materials and conversion costs, respectively for June?

a) 1340 units ; 1050 units

b) 1340 units ; 1290 units

c) 1220 units ; 1220 units

d) 1248 units; 1120 units

DATA FOR THE ASSE MBLY DEPARTMENT FOR JUNY 2017 ARE \begin{tabular}{|c|l|} \hline Work in process, beginning inventory & 370 units \\ \hline Direct materials ( 100% complete) & \\ \hline Conversion costs ( 60% complete) & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Units Started during June & 970 units \\ \hline Work in process, ending inventory & 250 units \\ \hline Direct materials ( 100% complete) & \\ \hline Conversion costs ( 80% complete) & \\ \hline \end{tabular} COSTS FOR JUNE 2017: \begin{tabular}{|l|r|} \hline Work in process, beginning inventory & \\ \hline Direct materials & $90,000 \\ \hline Conversion costs & $137,000 \\ \hline Direct materials costs added during June & $602,500 \\ \hline Conversion costs added during June & $401,000 \\ \hline \end{tabular}