Pappa Don's Makes Frozen Pizzas

Pappa Don's makes frozen pizzas. All direct materials are introduced at the start of the process. Conversion costs are incurred evenly throughout the process. In February there was no beginning WIP inventory, but 485,000 units were started. At the end of February, there were 90,000 units still in process at the 70% stage of completion. Total costs incurred during February amounted to $1,212,500 for materials and $3,664,000 for conversion costs.
Compute the following:
a. Units completed and transferred
b. Equivalent units of materials and conversions
c. Cost per equivalent unit of materials and conversion
d. Cost of a completed unit

Correct Answer:

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a. 0 + 485,000 - 90,000 = 395,000 units
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