Computing unit costs; cost of units finished; cost of units in process}

The following data appeared in the accounting records of Palace Manufacturing Company, which uses an average cost production system:

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Started in process 12,000 units Finished and transferred Work in process, end of month 10,500 units Materials Labor Factory overhead 1,500 units (2/5 completed) $36,000 $44,400 $22,200 Case 1-All materials are added at the beginning of the process and labor and factory overhead are added evenly throughout the process. Case 2-One-half of the materials are added at the start of the manufac- turing process and the balance of the materials are added when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished during the month c. Cost of the units in process at the end of the month