An entrepreneurial student in MBA 641 class got inspiration for a new product after having to suffer through boring hours listening to the mean, nasty and ugly Tasmanian instructor 

The new product was a cement fishing boot. People would take 'friends' fishing in a deep ocean and then drop them overboard to fish in a nice quiet and friendly environment.

Manufacturing of the cement fishing boots would take two major processes. The first process involved mixing of the liquid material to ensure the boots were waterproof. The second process involved heating and moulding of the liquid solution into solid items. The liquid solution was mixed in the soup department and the boots were moulded in the bakery department.

Production figures for the soup department for the month of December are provided below.

Production Data:

Units (kgs) in process, December 1: Materials 52% complete; labour 69% and overheads 47% complete. 430,000kgs

Units (kgs) started into production during December 1,220,000kgs

Units (kgs) completed and transferred to the Bakery Department 1,315,000 kgs

Units (kgs) in process, December 31: Materials 36% complete; labour 63% and overheads 71% complete: 335,000kgs

Cost Data:

Work-in-Process Inventory, December 1

Materials $492,000

Labour $751,000

Overhead $537,000

Total Cost of Work-In-Progress $1,780,000

Cost Added during December:

Materials $6,112,000

Labour $2,880,000

Overhead $3,555,000

Total Cost of Work-In-Progress $12,547,000

Required:

Compute the equivalent units of production, cost per equivalent units, cost of product transferred and ending inventory using:

(1)Weighted-Average Approach; and

(2)First-In, First-Out Approach.