Answer:
Direct Materials = 340,000
Direct Labor = 304,000
Explanation:
The concept of equivalent units measures the number of units to the extend of completion of inputs added to outputs during the production.
The first step is to determine the units completed and transferred.
units completed and transferred = opening work in process + started during the year - closing work in process
= 90,000 + 250,000 - 60,000
= 280,000
then determine the equivalent units of production with respect to direct materials and conversion costs.
<u>Direct Materials</u>
Note : Materials are added in the beginning of the process thus 100 % in all categories.
units completed and transferred (280,000 × 100%) = 280,000
units of closing work in process (60,000 × 100%) = 60,000
Total = 340,000
<u>Conversion Cost</u>
units completed and transferred (280,000 × 100%) = 280,000
units of closing work in process (60,000 × 40%) = 24,000
Total = 304,000
