After completing Steps 1-4 of the process costing procedure, Peterson Corporation arrived at the following equivalent units and costs per equivalent unit for its final production department for the month of July:

1. How much cost should be assigned to the
a. units completed and transferred out to Finished Goods Inventory during July?
b. partially complete units still in ending work in process inventory at the end of July?
2. What was the "Total cost accounted for" during July? What other important figure must this match? What does this figure tell you?
3. What is Peterson Corporation's average cost of making each unit of its product from the first production department all the way through the final production department?

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Equivalent Units Direct Transferred- in Conversion Costs Materials 72,000 7,900 79,900 Units completed and transferred out during July Plus: Ending work in process, July 31 Total equivalent units Cost per equivalent unit 72,000 72,000 81,000 75,500 0.75 2.34 1.56