# Question

Reutter Company manufactures a single product and uses process costing. The company’s product goes through two processing departments, Etching and Wiring. The following activity was recorded in the Etching Department during July:
Production data:
Units in process, July 1: materials 60% complete;
conversion 30% complete . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Units started into production . . . . . . . . . . . . . . . . . . . . . . . . 510,000
Units in process, July 31: materials
80% complete; conversion 40% complete. . . . . . . . . . . . 70,000
Cost data:
Work in process inventory, July 1:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$27,000
Conversion cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$13,000
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$468,000
Conversion cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$357,000

Materials are added at several stages during the etching process. The company uses the FIFO method.

Required:
1. Determine the equivalent units for July for the Etching Department.
2. Compute the costs per equivalent unit for July for the Etching Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for the Etching Department in July.
4. Prepare a cost reconciliation report for the Etching Department for July.

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