3 . Vintage Fun reproduces old-fashioned style roller skates and skateboards . The annual production and sales of roller skates is 950 units , while 1,750 skateboards are produced and sold . The company has traditionally used direct labor hours to allocate its overhead to products . Roller skates require 2.5 direct labor hours per unit , while skateboards require 1.25 direct labor hours per unit . The total estimated overhead for the period is $ 114,300 . The company is looking at the possibility of changing to an activity-based costing system for its products . If the company used an activity-based costing system , it would have the following three activity cost pools : ================================================== ACCT 346 Week 3 Homework Assignment
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3 . Vintage Fun reproduces old-fashioned style roller skates and skateboards . The annual production and sales of roller skates is 950 units , while 1,750 skateboards are produced and sold . The company has traditionally used direct labor hours to allocate its overhead to products . Roller skates require 2.5 direct labor hours per unit , while skateboards require 1.25 direct labor hours per unit . The total estimated overhead for the period is $ 114,300 . The company is looking at the possibility of changing to an activity-based costing system for its products . If the company used an activity-based costing system , it would have the following three activity cost pools : ================================================== ACCT 346 Week 3 Homework Assignment
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1 . Beginning WIP inventory is 15,500 units , 75 % complete for materials . During the month , 90,000 units were started ; 87,000 were finished ; and ending WIP was 18,500 units that were 50 % complete for materials .
How many equivalent units should be used to allocate costs for materials ? ( Assume that the weighted average method is used , not FIFO .)
2 . During a period , 38,200 units were completed and 4,200 units were in ending WIP inventory . Ending WIP was 75 % complete for direct materials and 50 % complete for conversion costs .
2a . What are the equivalent units for direct materials ?