Question
XYZ companys costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department.
XYZ companys costing system uses two cost categories, direct materials and conversion costs. Each product 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. It uses weighted-average costing. Data for the Assembly Department for June 2020 are: WIP beginning 50% complete 250 units, Units started during June 800 units and WIP ending 75% complete 150 units. The equivalent units of materials is:
a. 750 units.
b. 950 units.
c. 1,050 units.
d. 900 units.
XYZ companys costing system uses two cost categories, direct materials and conversion costs. Each product 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. It uses weighted-average costing. Data for the Assembly Department for June 2020 are: WIP beginning 50% complete 250 units, Units started during June 800 units and WIP ending 75% complete 150 units. The number of units completed and transferred to testing department is:
a. 900 units.
b. 950 units.
c. 1,050 units.
d. 650 units.
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