Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department:

Costs assigned to beginning work in process: direct materials, $90,000; conversion costs, $33,750. Manufacturing costs incurred during April: direct materials, $75,000; conversion costs, $220,000. Holmes uses the weighted average method.
Required:
1. Compute the unit cost for April.
2. Determine the cost of ending work in process and the cost of goods transferred out.

Transcribed Image Text:

Direct Materials Conversion Costs Units completed Units, ending work in process × 25,000 25,000 Percentage complete 8,000 >< 100% 8,000 50% 8,000 4,000 29,000 Equivalent units of output 33,000