The following equivalent unit figures were taken from the December production cost report of the Distillation Department of Meadow Brook Lubricants:
Equivalent Units | Direct Materials | Conversion |
Equivalent units to finish beginning inventory | 0 | 800 |
Equivalent units to start new units in December | 48,000 | 47,000 |
Equivalent units of input in December | 48,000 | 47,800 |
a. At what point m the production process are direct materials added in the company's Distillation Department? Explain your answer.
b. If the Distillation Department's ending inventory on December 31 is comprised of 5.000 equivalent units of direct materials and 4.000 equivalent units of conversion, how many units were started and completed by the department during December?
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