1. The Swiss Clock Shop manufactures clocks on a highly automated assembly line. Its costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials fare added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Data for the Assembly Department for June are:

WIP, beginning inventory 250 units

Direct Materials (100% complete)

Conversion costs (50% complete)

Units started during June 800 units

WIP, ending inventory 150 units

Direct Materials (100% complete)

Conversion costs (75% complete)

Costs for June:

WIP, beginning inventory

Materials $180,000

Conversion costs 270,000

Costs Added in June

Materials $1,000,000

Conversion costs 1,000,000

REQUIRED (show all equations & work):

1. What is the conversion cost per equivalent unit in June if the company uses a weighted average costing system?
2. What is the material cost per equivalent unit in June if the company uses a FIFO costing system?