Use the information below to answer the following question(s).
Plastic Molding, Inc.'s costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for March are:

-Beginning inventory contained 5,000 units of goods that were 40 percent complete as to direct material, and 50 percent complete as to conversion. What is the equivalent units completed for materials and conversion at the beginning of the year, respectively?
A) 5,000 and 5,000
B) 1,000 and 5,000
C) 3,000 and 2,500
D) 2,000 and 2,500
E) 0 and 5,000

Question

Use the information below to answer the following question(s).
Plastic Molding, Inc.'s costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for March are:
 
-Beginning inventory contained 5,000 units of goods that were 40 percent complete as to direct material, and 50 percent complete as to conversion. What is the equivalent units completed for materials and conversion at the beginning of the year, respectively?
A) 5,000 and 5,000 
B) 1,000 and 5,000 
C) 3,000 and 2,500 
D) 2,000 and 2,500 
E) 0 and 5,000

Quizplus · Accepted Answer

Equivalent units for materials are 2,000 (5,000 units * 40%) and for conversion are 2,500 (5,000 units * 50%).

Use the Information Below to Answer the Following Question(s)