Problem: Eat-M-Up, 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. Blue Sky 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 600 800
Total number of units transferred to finished goods 450 700
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 were completed and the units remaining in work in process at the end of the month were 60% complete.
1. Refer to the information above. For the month of June, the number of equivalent units of direct materials produced were:
a. 600
b. 450
c. 440
d. Some other amount
2. Refer to the information above. For the month of July, the number of equivalent units of direct materials produced were:
a. 600
b. 700
c. 900
d. 800
3. Refer to the information above. For the month of June, the number of equivalent units of labor and overhead produced were:
a. 600.
b. 450.
c. 495.
d. 440.