A Birmingham, UK, company manufactures and sells digital voice recorders. Business is booming. Various materials are added at various stages in the assembly department. Costs are accounted for on a process-cost basis. The end of the process involves conducting a final inspection and adding a cardboard carton.

The final inspection requires 5 percent of the total processing time. All materials except the carton are added by the time the recorders reach an 80 percent stage of completion of conversion.

There were no beginning inventories. During 2011, 150,000 recorders were started in production. At the end of the year, which was not a busy time, 5,000 recorders were in various stages of completion. All the ending units in work-in-process were at the 95 percent stage. They awaited final inspection and being placed in cartons.

Total direct materials consumed in production, except for cartons, cost £2,250,000. Cartons used cost £290,000. Total conversion costs were £1,198,000.

1. Present a schedule of physical units, equivalent units, and unit costs of direct materials, cartons, and conversion costs.

2. Present a summary of the cost of goods completed and the cost of ending work-in-process.