Problem
Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 20%. The company's controller suspects that the year-end dollar balances shown below in the inventory accounts may be incorrect. Work in process, December 31 (materials 100% complete; conversion 60% complete) Finished goods, December 31 Work in process, beginning of year (materials 100% complete; conversion 50% complete) Started into production Costs added during the year Units completed during the year There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Equivalent units of production Cost per equivalent unit Units Materials 32,000 37,000 Conversion Units 27,000 755,000 Costs 750,000 $ 67,000 $120,500 Costs Materials Conversion Required:
• Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year.