Midway Metal produces wire baskets in two departments, Bending and Painting. The Work in Process Inventory T-account for the Bending department is shown below. The 2,000 units in beginning work in process inventory had direct materials costs of $2,400 and conversion costs of $1,600. Also shown is unit data for the Bending department this period.

a. Compute equivalent units of production for both direct materials and conversion.
b. Compute cost per equivalent unit of production for both direct materials and conversion.
c. Assign costs to the department’s output—specifically, to the units transferred out and to the units in ending work in process inventory.

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Direct Materials Conversion Work in Process Inventory-Bending ($) Units Percent Complete Percent Complete Beginning 4,000 ? Transferred out Direct materials 7,200 Beginning work in process inventory ... 2,000 100% 20% Direct labor 3,000 Units started this period. 6,000 Overhead 14,400 Completed and transferred out. 7,000 Ending Ending work in process inventory...... 1,000 100% 60%