Use the following information for questions 15.

Top Hat 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 31 50,000 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 28 75,000 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. If Top Hat uses the first-in, first-out (FIFO) method to account for inventories, the equivalent units of work for the month of February are

Direct Materials Conversion Costs

a. 225,000 225,000

b. 225,000 195,000

c. 275,000 200,000

d. 200,000 195,000

2. If Top Hat uses the FIFO method to account for inventories, the costs per equivalent unit for February are

Direct Materials Conversion Costs

a. $1.50 $1.76

b. $1.83 $1.72

c. $1.71 $1.81

d. $1.52 $1.81

3. Assuming Top Hat uses the weighted-average method to account for inventories, the equivalent units of work for the month of February are

Direct Materials Conversion Costs

a. 225,000 225,000

b. 200,000 200,000

c. 275,000 215,000

d. 225,000 200,000

4. Assuming Top Hat uses the weighted-average method to account for inventories, the assignment of costs to work in process at the end of February is

a. $300,000.

b. $266,250.

c $166,525.

d. $139,500.

5. Assuming Top Hat used the weighted-average method to account for inventories, the cost per equivalent unit produced during February is

a. $3.30.

b. $3.55.

c. $3.77.

d. $4.00.