Lido Company uses the first-in-first-out method for its process costing system. The Molding department at Lido began the month of July with 6,000 units in Work in Process Inventory (70 percent complete for direct materials, 85 percent complete for direct labor, and 85 percent complete for overhead). All 6,000 units were completed and transferred out during July. An additional 7,000 units were started during the month, 2,000 of which were completed and transferred out during July. A total of 5,000 units remained in Work in Process Inventory at the end of July and were at varying levels of completion, as shown below.

Direct materials: 80 percent complete Direct labor: 90 percent complete Overhead: 90 percent complete The following cost information is for the Molding Department at Lido Company for the month of July:

Required

a. Determine the units to be accounted for and units accounted for; then calculate the equivalent units for direct materials, direct labor, and overhead. This requires performing step 1 of the four-step process.

b. Calculate the cost per equivalent unit for direct materials, direct labor, and overhead. This requires performing step 2 and step 3 of the four-step process.

c. Assign costs to units transferred out and to units in ending WIP Inventory. This requires performing step 4 of the four-step process.

d. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4). Note that minor differences may occur due to rounding the cost per equivalent unit in step 3.

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Direct Direct Materials Labor Overhead Total Beginning WIP Inventory $100,000 $60,000 $105,000 $265,000 Incurred during the month 120,000 80,000 130,000 330,000