Question
Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in the Cutting Department. Conversion costs are incurred (and allocated) uniformly
Top That manufactures baseball-style hats. Material is introduced at the beginning of the process in the Cutting Department. Conversion costs are incurred (and allocated) uniformly throughout the process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Data for the Cutting Department for the month of February 2009 follow:
Work-in-process, January 3150,000 units
100% complete for direct materials; 40% completed for conversion costs actual costs of direct materials, $70,500; actual costs of conversion, $34,050
Units started during February, 225,000
Units completed during February 200,000
Work-in-process, February 2875,000 units
100% complete for direct materials; 20% completed for conversion costs
Direct materials added during February [actual costs]$342,000
Conversion costs added during February [actual costs]$352,950
1.Assuming Top That uses the weighted-average method to account for inventories, the equivalent units of work for the month of February are
Direct MaterialsConversion Costs
a.225,000225,000
b.200,000200,000
c.275,000215,000
d.225,000200,000
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