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A company makes telescopes. All direct materials used inthe production of telescopes are added at the beginning of themanufacturing process. Labor and overhead are added evenlythereafter, as each unit is assembled, adjusted, andtested. The company uses process costing and had thefollowing unit production information available for the months ofJanuary and February: Jan Feb
Number of units in beginning work in processinventory............ 0 50Number of units started during themonth.................................200 300Total number of units transferred to finishedgoods................... 150 250
The units in work in process at the end of January wereapproximately 40 percent complete. During the month ofFebruary, all of the beginning work in process units were completedand the units remaining in work in process at the end of the monthwere approximately 75 percent complete.
a. for the month of January, calculate the equivalent unitsproduced for each of the two cost categories- direct materialsand labor and overhead.
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