Jackson Ltd. uses an automated process in its manufacturing operations. On September 1, the company had 15,000 units in beginning work in process which were 60% complete with respect to conversion. During the month of September, it started 100,000 into production. On September 30, there were 20,000 units in process, which were 30% complete with respect to conversion.

Direct materials are added at the beginning of the process, and no units are spoiled in production. The beginning inventory had direct materials costs of $135,900 and conversion costs of $38,500. During the month, the company issues $620,000 of direct materials and incurred $199,400 of conversion costs.

Required

1. Prepare a production cost worksheet using the FIFO method:

a) Calcualte the physical units to account for. (3 marks)

b) Compute equivalent units for DM and CC. (4 marks)

c) Summarize total costs to account for. (3 marks)

d) Compute cost per equivalent unit. (3 marks)

e) Assign total costs to units completed and WIP, ending. (5 marks)

2. Prepare the journal entries affecting WIP. (5 marks)

3. Prepare the t-account for WIP. (5 marks)