Direct Materials Are Added at the Beginning of the Process

question 77

Essay

Direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include:
$\begin{array}{|l|r|}\hline \text { WIP beginning (40\% for conversion) } & 22,500 \text { units } \\\hline \text { Units started } & 130,000 \text { units } \\\hline \text { Units completed and transferred out } & 124,000 \text { units } \\\hline \text { WIP ending ( } 60 \% \text { for conversion) } & 28,500 \text { units } \\\hline \text { Beginning WIP direct materials } & \$ 51,900 \\\hline \text { Beginning WIP conversion costs } & \$ 20,174 \\\hline \text { Costs of materials added } & \$ 430,000 \\\hline \text { Costs of conversion added } & \$ 310,000 \\\hline\end{array}$
Required:
a.What are the total equivalent units for direct materials?
b.What are the total equivalent units for conversion costs?
c.What is the cost per equivalent unit for direct materials?
d.What is the cost per equivalent unit for conversion costs?
e.What is the total cost of units completed and transferred out?
f.What is the total cost of units remaining in ending WIP?

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Definitions:

Cue

A signal or prompt that induces a person to act or respond in a certain way, often used in behavior studies, marketing, and psychological contexts.

Response

The reaction or answer provided following a particular stimulus, inquiry, or situation.

Reinforcement

In the context of behavior, it is the process of encouraging or establishing a pattern of behavior through rewards or consequences.

Stimulus Discrimination

The ability of an individual to differentiate between similar stimuli and respond appropriately to each, often used in marketing to distinguish a brand from its competitors.