MHR Inc. uses a standard process costing system. All material is added at the beginning of the production process. Per unit standard costs for one of the company’s products are as follows:

Direct material ........ $ 8.25

Direct labor ......... 1.60

Overhead ........... 4.90

Total standard cost ......$ 14.75

October 2013 production and cost information for MHR follow:

Units in beginning inventory (40% complete as to DL, 70% complete as to OH)..14,800

Units started.............................385,000

Units in ending inventory (60% complete as to DL, 85% complete as to OH)..4,300

Current period costs:

Direct material ........................$ 3,201,032

Direct labor .............................625,510

Overhead .............................1,904,390

a. Prepare an equivalent units of production schedule.

b. Determine the cost of the beginning inventory (in total and by cost component).

c. Assign costs to goods transferred and to ending WIP inventory.

d. Calculate and label (F or U) the variances.