Acme Birds, Inc. produces bird seeds. All direct materials used in the productio
ID: 2375824 • Letter: A
Question
Acme Birds, Inc. produces bird seeds. All direct materials used in the production process are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is mixed and packaged. Acme Birds uses process costing and had the following unit production information available for the months of June and July;
June July
Number of units in beginning work in process inventory 0 150
Number of units started during the month 750 950
Total number of units transferred to finished goods 600 850
The units remaining in work in process at the end of June were 30% complete. During the month of July, all of the beginning work in process units was completed and the units remaining in work in process at the end of the month were 60% completed.
a. For the month of June, the number of equivalent units of direct materials produced was:
b. For the month of June, the number of equivalent units of labor and overhead produced was:
c. For the month of July, the number of equivalent units of direct materials produced was:
d. For the month of July, the number of equivalent units of direct materials produced was:
Please show ALL WORK for answers.
Explanation / Answer
A. 750 (This is 750*100% b/c all materials are added at the beginning)
B. 600 + 150*30% = 645 (Number started and finished plus percentage completed times number in process)
C. 950 (Same rationale as A)
D. 150*70% + 700 + 250*60% = 955 (This is the 150 you finished from June, plus the 700 your started and finished [850-150], plus the remaining 250 you only got 60% through with [950-700])
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