Associates, Inc. uses the weighted-average method in its process costing system. The following data relates to the process operations of the company for a recent month:

Beginning Work in Process Inventory:

Units in Process.................................................500

% complete with respect to direct materials.....80%

% complete with respect to conversion costs...70%

Ending Work in Process Inventory:

Units in Process.................................................500

% complete with respect to direct materials.....80%

% complete with respect to conversion costs...20%

Units started into production during the current month: 12,000

Units completed and transferred to finished goods: 12,000

Costs in the beginning Work in Process Inventory:

Direct materials costs $ 1,340

Conversion costs $ 8,475

Costs added to production during the current month:

Direct materials costs $ 65,000

Conversion costs $412,000

Total costs (beginning WIP Inv. plus current month) $486,815

Required:

1. Compute equivalent units of production for (a) direct materials and (b) conversion costs.

2. Compute cost per equivalent unit for (a) direct materials and (b) conversion costs.

3. Compute the total cost to be assigned to the units that were completed and transferred to finished goods.

4. Compute the total cost to be assigned to the incomplete units in the ending Work in Process Inventory.

(This problem is worth a total of 20 points.)

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