GitAlong Inc. manufactures belt buckles in a single-step production process. The following information is available for June 2013:

  

      

  

All material is added at the start of the production process. Beginning and ending inventory units were, respectively 80 percent and 70 percent complete as to conversion. Overhead cost is applied to production at the rate of 60 percent of direct labor cost. 

a. Prepare a schedule to compute equivalent units of production by cost component assuming the weighted average method.

b. Determine the unit production costs for material and conversion.

c. Calculate the costs assigned to completed units and ending inventory for August 2013.

  
 

Transcribed Image Text:

Physical Units Cost of Material Cost of Labor Beginning work in process Units started during period Units in ending inventory 200,000 1,000,000 300,000 $1,200,000 7,800,000 $ 671,875 3,976,250 Physical Units Cost of Material Cost of Labor Beginning work in process Units started during period Units in ending inventory 200,000 1,000,000 300,000 $1,200,000 7,800,000 $ 671,875 3,976,250

Answer rating: 100% (QA)

Step 1 Equivalent units of production Eq... View the full answer