Question
Use the following information to answer the following two questions: Injection Molding, Inc. manufactures plastic moldings for car seats. Its costing system utilizes two cost
Use the following information to answer the following two questions:
Injection Molding, Inc. manufactures plastic moldings for car seats. Its costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 20X1 are:
Work-in-process, beginning inventory, 40% converted 2,000 units
Units started during February 6,000 units
Work-in-process, ending inventory 70% complete as
to conversion 1,000 units
costs, 100% complete as to materials.
Costs for the Department A for February 20X1 are:
Work-in-process, beginning inventory:
Direct materials $100,000
Conversion costs $90,000
Direct materials costs added during February $800,000
Conversion costs added during February $1,100,000
What were Department As equivalent units of conversion costs at the end of February? Assume Injection Molding Inc. uses the First-In First-Out (FIFO) process costing method.
7,700
8,000
6,000
6,900
6,500
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