Real Company adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. Given the following information from Real’s records for July, compute the current period’s equivalent units of production for direct materials and conversion costs using the average costing method.
Units in beginning inventory ......... 2,000
Units started during the period ........ 13,000
Units partially completed in prior period ...... 500
Percentage of completion of .......... 100% for direct materials;
beginning inventory ............. 40% for conversion costs
Percentage of completion of ending work in .... 100% for direct materials;
process inventory .............. 70% for conversion costs