A Manchester, England, company manufactures and sells small portable digital voice recorders.

Business is booming. Several materials are added at various stages in the assembly department. Costs are accounted for on a process-cost basis. The end of the process involves conducting a final inspection and adding a cardboard carton.

The final inspection requires 5% of the total processing time. All units inspected during the period successfully passed inspection. All materials, besides the carton, are added by the time the recorders reach an 80% stage of completion of conversion.

There were no beginning inventories. During 20X1, 150,000 recorders were started in production. At the end of the year, which was not a busy time, 5,000 recorders were in various stages of completion. All the ending units in work in process were at the 95% stage. They awaited final inspection before being placed in cartons.

Total direct materials consumed in production, except for cartons, cost £2,250,000. Cartons used cost £319,000. Total conversion costs were £1,198,000.

1. Present a schedule of physical units, equivalent units, and unit costs of direct materials, cartons, and conversion costs.

2. Present a summary of the cost of goods completed and the cost of ending work in process.