In its first month of operations (May 2019), Holland Company's Department 1 incurred charges of \($72,000\) for direct materials (9,000 units), \($38,700\) for direct labor, and \($13,950\) for manufacturing overhead. At month-end, 7,500 units had been finished and transferred out. Those remaining were finished with respect to materials but only 40% finished with respect to conversion.

Assuming Holland uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following:

a. The equivalent units for materials and conversion.

b. The cost per equivalent unit for materials and conversion.

c. The total cost assigned to the units transferred out.

d. The total cost assigned to the ending inventory.

e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.