Question

Complete the missing amounts in the following production report. Materials are added at the beginning of the process; conversion costs are incurred evenly; the ending inventory is 60% complete. The company uses the weighted-average method.

NATHAN COMPANY Production Cost Report – Finishing Department Month Ended September 30, 2018
Units	Physical units	Equivalent Units
		Direct materials	Conversion costs
Units to account for:
Beginning work-in-process	500
Started in production	2,200
Total units to account for	(a)
Units accounted for:
Completed and transferred out	(b)	(d)	(g)
Ending work-in-process	500	(e )	(h)
Total units accounted for	(c)	(f)	(i)
COSTS		Direct materials	Conversion costs	Total costs
Cost to account for:
Beginning work-in-process		\(1,200	(j)	\)2,140
Cost added during period		12,030	8,310	(k)
Total costs to account for		(l)	9,250	22,480
Divided by: Total EUP		(m)	(n)
Cost per equivalent unit		(o)	(p)
Costs accounted for:
Completed and transferred out		(q)	(r)	(s)
Ending work-in-process		(t)	(u)	(v)
Total cost accounted for		(w)	(x)	$22,480

Short answer

Letter
A	2,700 units
B	2,200 units
C	2,700 units
D	2,200 units
E	500 units
F	2,700 units
G	2,200 units
H	300 units
I	2,500 units
J	$940
K	$20,340
L	$13,230
M	2,700 units
N	2,500 units
O	$4.90
P	$3.70
Q	$10,780
R	$8,140
S	$18,920
T	$2,450
U	$1,110
V	$3,560
W	$13,230
X	$9,250

Step-by-step solution

Step-by-Step Solution:Step 1: Production Cost Report

A production cost report is prepared by the company's management using the process costing system to represent the total cost incurred while manufacturing the products.

Calculation of letter (a) total units to account for

$$\begin{gathered} \mathbf{Total}\mathbf{}\mathbf{Units}\mathbf{}\mathbf{to}\mathbf{}\mathbf{account}\mathbf{}\mathbf{for}\mathbf{=}\mathbf{Beginning}\mathbf{}\mathbf{WIP}\mathbf{}\mathbf{units}\mathbf{+}\mathbf{Started}\mathbf{}\mathbf{in}\mathbf{}\mathbf{production} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{500}\mathbf{+}\mathbf{2}\mathbf{,}\mathbf{200} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{700} \end{gathered}$$

Calculation of letter (c) total units accounted for

The total units accounted for equals the total units to account for. Hence the total units accounted for is 2,700 units.

Calculation of letter (b) completed and transferred out units

$$\begin{gathered} \mathbf{Completed}\mathbf{}\mathbf{and}\mathbf{}\mathbf{transferred}\mathbf{}\mathbf{outunits}\mathbf{=}\mathbf{Total}\mathbf{}\mathbf{units}\mathbf{}\mathbf{accounted}\mathbf{}\mathbf{for}\mathbf{-}\mathbf{Ending}\mathbf{}\mathbf{WIP}\mathbf{}\mathbf{units} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{700}\mathbf{-}\mathbf{500} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200} \end{gathered}$$

Calculation of letter (d) equivalent units of production of completed units for direct materials

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{Completed}\mathbf{}\mathbf{units}\mathbf{}\mathbf{for}\mathbf{}\mathbf{direct}\mathbf{}\mathbf{materials}\mathbf{=}\mathbf{Number}\mathbf{}\mathbf{of}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Completion}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{\times }\mathbf{100}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200} \end{gathered}$$

Calculation of letter (e) equivalent units of production of ending WIP for direct materials

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{ending}\mathbf{}\mathbf{WIP}\mathbf{}\mathbf{for}\mathbf{}\mathbf{direct}\mathbf{}\mathbf{materials}\mathbf{=}\mathbf{Number}\mathbf{}\mathbf{of}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Completion}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{500}\mathbf{\times }\mathbf{100}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{500} \end{gathered}$$

Calculation of letter (f) equivalent units of production for direct materials

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{for}\mathbf{}\mathbf{directmaterials}\mathbf{=}\mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{completed}\mathbf{}\mathbf{units}\mathbf{+}\mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{WIPunits} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{+}\mathbf{500} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{700} \end{gathered}$$

Calculation of letter (g) equivalent units of production of completed units for conversion cost

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{Completed}\mathbf{}\mathbf{units}\mathbf{}\mathbf{for}\mathbf{}\mathbf{conversion}\mathbf{}\mathbf{cost}\mathbf{=}\mathbf{Number}\mathbf{}\mathbf{of}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Completion}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{\times }\mathbf{100}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200} \end{gathered}$$

Calculation of letter (h) equivalent units of production of ending WIP for conversion cost

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{ending}\mathbf{}\mathbf{WIP}\mathbf{}\mathbf{for}\mathbf{}\mathbf{directmaterials}\mathbf{=}\mathbf{Number}\mathbf{}\mathbf{of}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Completion}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{500}\mathbf{\times }\mathbf{60}\mathbf{\%} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{300} \end{gathered}$$

Calculation of letter (i) equivalent units of production for conversion costs

$$\begin{gathered} \mathbf{EUP}\mathbf{}\mathbf{for}\mathbf{}\mathbf{conversion}\mathbf{}\mathbf{costs}\mathbf{=}\mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{completed}\mathbf{}\mathbf{units}\mathbf{+}\mathbf{EUP}\mathbf{}\mathbf{of}\mathbf{}\mathbf{WIPunits} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{+}\mathbf{300} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{500} \end{gathered}$$

Calculation of letter (j) Conversion cost of beginning WIP

$$\begin{gathered} \mathbf{Conversion}\mathbf{}\mathbf{costs}\mathbf{}\mathbf{of}\mathbf{}\mathbf{beginning}\mathbf{}\mathbf{WIP}\mathbf{=}\mathbf{Total}\mathbf{}\mathbf{costs}\mathbf{}\mathbf{to}\mathbf{}\mathbf{account}\mathbf{}\mathbf{for}\mathbf{-}\mathbf{Cost}\mathbf{}\mathbf{added}\mathbf{}\mathbf{during}\mathbf{}\mathbf{period} \\ \begin{array}{c}=\$9,250-\$8,310\\ =\$940\end{array} \end{gathered}$$

Calculation of letter (k) Total cost added during the period

$\begin{array}{c}\mathrm{Total}\mathrm{costs}\mathrm{added}\mathrm{during}\mathrm{the}\mathrm{period}=\mathrm{Direct}\mathrm{material}+\mathrm{Conversion}\mathrm{costs}\\ =\$12,030+\$8,310\\ =\$20,340\end{array}$

Calculation of letter (l) Total cost to account for direct material

$\begin{array}{c}\mathrm{Total}\mathrm{cost}\mathrm{to}\mathrm{account}\mathrm{for}\mathrm{direct}\mathrm{material}=\mathrm{Beginning}\mathrm{WIP}+\mathrm{Costs}\mathrm{added}\mathrm{duringtheperiod}\\ =\$1,200+\$12,030\\ =\$13,230\end{array}$

Calculation of letter (m) Total EUP for direct material

The total EUP for direct material equals the total units accounted for Direct material, which is 2,700 units.

Calculation of letter (n) Total cost to account for conversion costs

The total EUP for conversion costs equals the total units accounted for conversion costs, which is 2,500 units.

Calculation of letter (o) cost per equivalent units of direct materials

$\begin{array}{c}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{Cost}\mathbf{}\mathbf{per}\mathbf{}\mathbf{}\mathbf{}\mathbf{EUP}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathrm{Total}\mathrm{cost}\mathrm{to}\mathrm{account}\mathrm{for}\mathrm{direct}\mathrm{material}}{\mathrm{Total}\mathrm{EUP}\mathrm{of}\mathrm{direct}\mathrm{material}}\\ \mathbf{=}\frac{\$13,230}{2,700}\\ \mathbf{=}\mathbf{\$}\mathbf{4}\mathbf{.}\mathbf{90}\end{array}$

Calculation of letter (p) cost per equivalent units of conversion costs

$\begin{array}{c}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{Cost}\mathbf{}\mathbf{per}\mathbf{}\mathbf{EUP}\mathbf{=}\mathbf{}\frac{\mathrm{Total}\mathrm{cost}\mathrm{to}\mathrm{account}\mathrm{for}\mathrm{conversion}\mathrm{costs}}{\mathrm{Total}\mathrm{EUP}\mathrm{of}\mathrm{conversion}\mathrm{costs}}\\ \mathbf{=}\frac{\$9,250}{2,500}\\ \mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{.}\mathbf{70}\end{array}$

Calculation of letter (q) Cost accounted for completed and transferred out units for direct material

$\begin{array}{c}\mathrm{Cost}\mathrm{of}\mathrm{completed}\mathrm{and}\mathrm{transferred}\mathrm{outunits}=\mathrm{Completed}\mathrm{and}\mathrm{transferred}\mathrm{out}\mathrm{units}\times \mathrm{Cost}\mathrm{per}\mathrm{EUP}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{\times }\mathbf{\$}\mathbf{4}\mathbf{.}\mathbf{90}\\ =\$10,780\end{array}$

Calculation of letter (r) Cost accounted for completed and transferred out units for conversion cost

$\begin{array}{c}\mathrm{Cost}\mathrm{of}\mathrm{completed}\mathrm{and}\mathrm{transferred}\mathrm{outunits}=\mathrm{Completed}\mathrm{and}\mathrm{transferred}\mathrm{outunits}\times \mathrm{Cost}\mathrm{per}\mathrm{EUP}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{2}\mathbf{,}\mathbf{200}\mathbf{\times }\mathbf{\$}\mathbf{3}\mathbf{.}\mathbf{70}\\ =\$8,140\end{array}$

Calculation of letter (s) Total cost of completed and transferred out units

$\begin{array}{c}\mathrm{Total}\mathrm{Cost}\mathrm{of}\mathrm{completed}\mathrm{and}\mathrm{transferred}\mathrm{outunits}=\mathrm{Cost}\mathrm{of}\mathrm{Direct}\mathrm{material}+\mathrm{Cost}\mathrm{of}\mathrm{conversion}\mathrm{cost}\\ =\$10,780+\$8,140\\ =\$18,920\end{array}$

Calculation of letter (t) Cost accounted for Ending WIP units for direct material

$\begin{array}{c}\mathrm{Cost}\mathrm{of}\mathrm{Ending}\mathrm{WIP}=\mathrm{Ending}\mathrm{WIP}\mathrm{units}\times \mathrm{Cost}\mathrm{per}\mathrm{EUP}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{500}\mathbf{\times }\mathbf{\$}\mathbf{4}\mathbf{.}\mathbf{90}\\ =\$2,450\end{array}$

Calculation of letter (u) Cost accounted for Ending WIP units for conversion costs

$\begin{array}{c}\mathrm{Cost}\mathrm{of}\mathrm{Ending}\mathrm{WIP}\mathrm{for}\mathrm{conversion}\mathrm{costs}=\mathrm{Ending}\mathrm{WIP}\mathrm{units}\mathrm{for}\mathrm{conversion}\mathrm{costs}\times \mathrm{Cost}\mathrm{per}\mathrm{EUP}\\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{300}\mathbf{\times }\mathbf{\$}\mathbf{3}\mathbf{.}\mathbf{70}\\ =\$1,110\end{array}$

Calculation of letter (v) Total costs of ending WIP

$\begin{array}{c}\mathrm{Total}\mathrm{cost}\mathrm{of}\mathrm{Ending}\mathrm{WIP}=\mathrm{Cost}\mathrm{of}\mathrm{direct}\mathrm{material}+\mathrm{Cost}\mathrm{of}\mathrm{conversion}\mathrm{costs}\\ =\$2,450+\$1,110\\ =\$3,560\end{array}$

Calculation of letter (w) Total costs accounted for direct material

$\begin{array}{c}\mathrm{Total}\mathrm{cost}\mathrm{accounted}\mathrm{for}\mathrm{directmaterial}=\mathrm{Cost}\mathrm{of}\mathrm{completed}\mathrm{units}+\mathrm{Ending}\mathrm{WIP}\\ =\$10,780+\$2,450\\ =\$13,230\end{array}$

Calculation of letter (x) Total costs accounted for conversion costs

$\begin{array}{c}\mathrm{Total}\mathrm{cost}\mathrm{accounted}\mathrm{for}\mathrm{conversion}\mathrm{costs}=\mathrm{Cost}\mathrm{of}\mathrm{completed}\mathrm{units}+\mathrm{Ending}\mathrm{WIP}\\ =\$8,140+\$1,110\\ =\$9,250\end{array}$