Stark Inc. uses the weighted-average method in its process costing system. The following

data concern the operations of the company's first processing department for a recent

month.

Work in process, beginning:

Units in process ........................................................... 200

Stage of completion with respect to materials ............ 70%

Stage of completion with respect to conversion.......... 10%

Costs in the beginning inventory:

Materials cost ........................................................... $856

Conversion cost ........................................................ $1,608

Units started into production during the month .............. 18,000

Units completed and transferred out .............................. 17,700

Costs added to production during the month:

Materials cost .............................................................. $126,569

Conversion cost ........................................................... $695,432

Work in process, ending:

Units in process ........................................................... 500

Stage of completion with respect to materials ............ 75%

Stage of completion with respect to conversion.......... 85%

Required:

a. Using the weighted-average method, determine the equivalent units of production for

materials and conversion.

b. Compute the costs per equivalent unit for materials and conversion.

c. Determine the total cost of ending work in process inventory and the total cost of units

transferred out of the Department during the month.

d. Prepare a cost reconciliation report.