1. Equivalent units are a critical concept in a Process Costing system. Explain what this means. In allocating production costs, why can't we treat all units in a manufacturing department the same?
2. Leigh Corp. manufactures computers. In its first month of operations, the assembly department completed 10 units. Ten additional units remain in process at month end. The units still in process are 100% complete with respect to materials and 40% complete with respect to conversion costs (direct labor and overhead). During the month, $20,000 of materials and $28,000 of conversion costs were used in the department.
   • How many equivalent units were completed for materials? For conversion costs?
   • What is the cost per equivalent unit for materials? For conversion costs?
   • Of the $48,000 costs, how much remains in Work in Process at month-end and how much is transferred to the next department?