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Question - Moon Gazers, Inc., produces telescopes for use by high school students. All direct materials used in the production of telescopes are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is assembled, adjusted, and tested. Moon Gazers uses process costing and had the following unit production information available for the months of January and February:
Jan.
Feb.
Number of units in beginning work in process inventory
0
100
Number of units started during the month
400
500
Total number of units transferred to finished goods
300
200
The units remaining in work in process at the end of January were approximately 60 percent complete. During the month of February, 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 approximately 80 percent complete.
a. For the month of January, calculate the equivalent units produced for each of the two cost categories direct materials and labor and overhead.
b. For the month of February, calculate the equivalent units produced for each of the two cost categories direct materials and labor and overhead.
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