NewsCorp prints and sells a variety of news magazines and newspapers on presses that run on the company’s presses 24 hours a day, seven days a week. This has always been the cheapest way to produce newsprint. Since the plant is always in operation, there are always papers in process at the beginning and end of any month. For September, the company incurred $2,691,000 in materials costs and $3,227,280 in conversion costs. Beginning inventory was 10,000 units, and 5,380,000 units were begun this month. At the end of the month, 16,000 units were in production, 50% done for materials, and 30% done for conversion. 

REQUIRED:

a. Calculate the physical units for materials and conversion for the month.

b. Calculate the equivalent units for materials and conversion for the month.

c. Develop a cost per equivalent units for materials and conversion.

d. Charge materials and conversion costs to finished goods and work- in- process using equivalent units as the basis.

e. Verify that all of the costs you had to account for have been accounted for.

f. What is the cost per good unit produced?