Swiss Chocolates Ltd produces blocks of chocolate. Raw materials in the form of cocoa solids, milk and sugar are added at the beginning of the process, flavouring, fruit and nuts are added half-way through the process and a cardboard box is added at the end. The conversion costs (direct labour and factory overhead) are incurred uniformly throughout the process. The following cost and production data are available for the month of June 2019.

The ending work in process inventory was 40% complete as to conversion costs.

Required

(a) Determine equivalent units for both raw materials and conversion costs.

(b) Prepare a cost of production report for the June 2019 production.

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Beginning work in process inventory: Units Cost of cocoa etc. added Cost of flavouring etc. added Cost of boxes added Conversion costs added June operating data: Units started Units finished Cost of cocoa etc. added Cost of flavouring etc. added Cost of boxes added Conversion costs 60 000 blocks of chocolate $ 36000 $ 12000 600 000 blocks of chocolate 620 000 blocks of chocolate $360,000 $124000 $ 62000 $306.000