Question
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion
- The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor 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. Townsend Tractor uses weighted-average costing.
Data for the Assembly Department for April 20X8 are: | |
Work in process, beginning inventory | 400 units |
Direct materials (100% complete) |
|
Conversion costs (40% complete) |
|
Units started during April | 1,200 units |
Work in process, ending inventory | 250 units |
Direct materials (100% complete) |
|
Conversion costs (80% complete) |
|
Costs for April 20X8 | |
Work in process beginning inventory: |
|
Direct materials | $230,000 |
Conversion costs | $220,000 |
DM costs added during June | $700,000 |
Conversion costs added during June | $1,175,000 |
What are the equivalent units for direct materials and conversion costs, respectively, for April?
- 1,600 units; 1,550 units
- 1,350 units; 1,350 units
- 250 units; 200 units
- 1,850 units; 1,690 units
- None of the above
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