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OatMeal, Inc. produces cookies that passes through two departments: Mixing and Baking. In the Mixing Department all direct materials are added at the beginning of the process. All other manufacturing inputs are added uniformly. The following information pertains to the Mixing Department for November. - Beginning work in process November 1: 90,000 pounds, 60 percent complete with respect to conversion costs.

The costs assigned to this material are as follows:

Direct Material $20,000

Direct Labor 10,000

Overhead 30,000

- Ending Work in process on November 30: 40,000 pounds, 50 percent complete with respect to conversion costs. - Good Units completed and transferred out: 360,000 pounds.

The following costs were added during the month:

Direct Material $211,000

Direct Labor 100,000

Overhead 270,000

- All units are inspected at the 50 percent point of completion. In a typical month, 12,000 pounds of the mixed product is discarded as spoiled. During the current month, there was an unexpected 1,500 spoilage because of inexperienced employees.

Required: Using the FIFO method, determine

a) The units of new starts

b) The Equivalent Units

c) The Cost per equivalent unit

d) The Value of the good units transferred out

e) The value of ending inventory

f) Assume that half of the good units transferred out are sold for $700,000. Determine the gross margin.

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