Ace Chemical Company manufactures and sells a cleaning solution. All direct materials are added at the beginning of the manufacturing process. A review of the inventory cost records disclosed the following information about the month of August:

During the month of August, 1,800,000 units were completed and transferred to finished goods inventory. There were 600,000 units, 60% complete with respect to conversion, in the work-in-process account on August 31.

Required:

a. How many units were in the work-in-process account on August 1?

b. Calculate the total equivalent units with respect to conversion for the month of August.

c. Determine the cost of goods manufactured for the month of August.

Transcribed Image Text:

Units Materials Labor Overhead WIP August 1 (72% complete with respect to conversion) Uinits started into production Costs incurred during August ?$1,260,000 $170,000 $510,000 during August 2,200,000 $3,900,000 5,500,000 S16,500,000