Standard-costing method. Ozumo’s Gardening makes several different kinds of mulch. Its busy period is in the summer months. In August, the controller suddenly quits due to a stressrelated disorder. He takes with him the standard costing results for RoseBark, Ozumo’s highest-

quality mulch. The controller had already completed the assignment of costs to finished goods and work in process, but the company does not know standard costs or the completion levels of inventory. The following information is available:

REQUIRED 1. Calculate completion percentages of beginning work in process with respect to the two inputs. 2. Calculate completion percentages of ending work in process with respect to the two inputs. 3. Determine the standard costs per unit for the two inputs. 4. Determine the cost of beginning work in process inventory.LO1

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zumo's Gardening Standard Costing Calculations for RoseBark For the Month Ended August 31, 2010 Equivalent Units (m) Physical Units Direct Conversion (m of mulch) Materials Costs Complete beginning work in process 965,000 0 434,250 Start and complete 845,000 845,000 845,000 Start ending work in process* 1,817,000 1,817,000 1,090,200 2,662,000 2,369,450 Units to account for 3,627,000 Costs Cost of units completed from beginning work in process Cost of new units started and completed Cost of units completed in August Cost of ending work in process Total costs accounted for $ 7,671,750 6,717,750 14,389,500 12,192,070 $26,581,570