Required information

Skip to question

[The following information applies to the questions displayed below.]

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

Beginning WIP inventory
Direct materials	$	982
Conversion costs		377
Current period costs
Direct materials		15,650
Conversion costs		7,903

Quantity information is obtained from the manufacturing records and includes the following.

Beginning inventory	800	units	(65% complete as to materials, 53% complete as to conversion)
Current period units started	4,700	units
Ending inventory	1,600	units	(45% complete as to materials, 15% complete as to conversion)

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and conversion costs.