Question 1
$2.70 per machine hour ($338,580 ÷ 125,400).
Units completed and transferred out + equivalent units of ending work in process materials = Equivalent unit of production Materials
Units Completed and Transferred out conversion costs + Equivalent Units of work in process conversion costs = Equivalent units of production conversion costs

Compute the direct materials used for the period, which is equal to the beginning inventory plus material purchases minus ending inventory.

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Therefore, total annual direct labor hours are . Expected annual manufacturing overhead costs are $900,000. Thus, the predetermined overhead rate under traditional costing, using direct labor hours, is per direct labor hour. Since both products require one direct labor hour per unit, both products are allocated overhead costs of $30 per unit under traditional costing.
Since materials are entered at the beginning of the process, the equivalent units of ending work in process are 10,000. Thus, equivalent units of production for materials.

b.
Since ending work in process is only 30% complete as to conversion costs, the equivalent units of ending work in process are 3,000 (30% × 10,000 units). Thus, equivalent units of production for conversion costs.
1530 started 30%= 459 1071

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Question 2 (a) | | Work in process, May 1 | | 440 | | | Started into production | | 1,530 | | | Total units to be accounted for | | 1,970 | | | Less: Transferred out | | 1,550 | | | Work in process, May 31 | | 420 |

(b) and (c) | | Equivalent Units | | | Materials | | Conversion Costs | Units transferred out | | 1,550 | | 1,550 | | Work in process, May 31 | | | | | | 420 x 100% | | 420 | |