During October, McCourt Associates incurred total production costs of $60,000 for copyediting manuscripts and had the following equivalent units schedule:
Units completed .................. 285
Units in EWIP × Fraction complete: 25 × 0.60 ....... 15
Equivalent units ................... 300
Required:
1. Calculate the cost of copyediting one manuscript for October.
2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation.
3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of $225? What is the discrepancy between the costs assigned and the costs to account for? What could have caused an incorrect unit cost?