Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. 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. 1,600 units; 1,550 units
  2. 1,350 units; 1,350 units
  3. 250 units; 200 units
  4. 1,850 units; 1,690 units
  5. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

5th Edition

1618532324, 9781618532329

More Books

Students also viewed these Accounting questions