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116) Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the
manufacturing process in the Cutting Department. Conversion costs are incurred uniformly
throughout the manufacturing process. As the cutting of material is completed, the pieces are
immediately transferred to the Sewing Department. Information for the Cutting Department for
the month of May follows.
Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with
respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion
costs).
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for
conversion costs).
If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent
units for direct materials and conversion respectively for May.
A) 225,000 materials; 195,000 conversion.
B) 275,000 materials; 215,000 conversion.
C) 150,000 materials; 150,000 conversion.
D) 195,000 materials; 225,000 conversion.
E) 195,000 materials; 195,000 conversion.