Audrey Auto Accessories Manufactures Plastic Moldings for Car Seats What Were the Equivalent Units of Direct Materials and Conversion

Audrey Auto Accessories manufactures plastic moldings for car seats.Its costing system uses 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. $\begin{array}{ll}\text { Datafor Department A for Februay } 2015 \text { are: }\\\text { Work in process, beginning inventory, } 40 \% \text { converted } & 200 \text { units } \\\text { Units started during February } & 800 \text { units } \\\text { Work in process, ending inventory: } & 100 \text { units } \\30 \% \text { complete as to conversion costs } & \\\quad 100 \% \text { complete as to materials } &\\\\\text { Costs for the Department A for February } 2015 \text { are: }\\\text { Work in process, beginuing inventory: }\\{\text { Direct materials }} & \$ 600,000 \\\quad \text { Conversion costs } & \$ 150,000 \\\text { Direct materials costs added during February } & \$ 4,000,000 \\\text { Conversion costs added during February } & \$ 2,250,000\end{array}$ What were the equivalent units of direct materials and conversion costs,respectively,at the end of February? Assume Audrey uses the weighted-average process costing method.

A) 1,000; 930
B) 1,000; 1,000
C) 1,000; 900
D) 800; 700

Correct Answer:

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