Note: To apply Process Costing concepts, they will use Weighted Average.

Beginning of the period: 50,000 units in process with 70% of the raw material and 50% of the conversion costs.

250,000 new units added to production during the period.

225,000 units completed and transferred during the period.

The units in process at the end of the period contain 60% of the raw material and 40% of conversion costs.

The sum of the cost of raw materials in inventory in process at the time of beginning of the period plus added raw material costs during the period is equal to $1,6877,500.

The sum of conversion costs in inventory in process at the time of beginning the period plus added conversion costs during the period equals $2,907,000.

REQUIRED

Prepare a report presenting:

Equivalent production

Average unit cost

Cost of the 225,000 units transferred

Cost of the units in process at the end of the period