Directions: Your assignment this week is to answer the two questions below. Please note that Question #2 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.
1. Beginning WIP inventory is 15,500 units, 75% complete for materials. During the month 90,000 units were started; 87,000 were finished; and ending WIP was 18,500 units that were 50% complete for materials.
How many equivalent units should be used to allocate costs for materials? (Assume that the weighted average method is used, not FIFO.)
2. During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs.
2a. What are the equivalent units for direct materials?
2b. What are the equivalent units for conversion costs?