A-1 Products manufactures wooden furniture using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company’s Work-in-Process Inventory account for June revealed the following selected information. 

Debit side: 

June 1 balance: 300 units, 30% complete as to conversion, cost $21,300* Production started: 900 units Direct material used during June: $45,000 June conversion cost: $25,700 

Credit side: Production completed: 700 units *Supplementary records revealed direct-material cost of $15,000 and conversion cost of $6,300. 

Conversations with manufacturing personnel revealed that the ending work in process was 60 percent complete as to conversion. 

Required: 

1. Determine the number of units in the June 30 work-in-process inventory. 

2. Calculate the cost of goods completed during June and prepare the appropriate journal entry to record completed production. 

3. Determine the cost of the June 30 work-in-process inventory. 

4. Briefly explain the meaning of equivalent units. Why are equivalent units needed to properly allocate costs between completed production and production in process?