What were the equivalent units of direct materials and conversion costs, respectively, at the end of February

ACCOUNTING

Multiple Choice

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 20x3 are:

Work in process, beginning inventory, 40% converted 200 units

Units started during February 600 units

Work in process, ending inventory 100 units



Costs for Department A for February 20x3 are:

Work in process, beginning inventory:

Direct materials $100,000

Conversion costs $100,000

Direct materials costs added during February $1,000,000

Conversion costs added during February $1,250,000



What were the equivalent units of direct materials and conversion costs, respectively, at the end of February? Assume Injection Molding, Inc., uses the weighted-average process costing method.

a. 800, 730

b. 800, 800

c. 800, 700

d. 600, 500

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