Mason Incorporated uses the first-in-first-out method for its process costing system. The Casting Department at Mason Incorporated began the month of September with 28,000 units in Work in Process Inventory (60 percent complete for direct materials, 60 percent complete for direct labor, and 70 percent complete for overhead).

All 28,000 units were completed and transferred out during September. An additional 42,000 units were started during the month, 10,000 of which were completed and transferred out during September. A total of 32,000 units remained in Work in Process Inventory at the end of September and were at varying levels of completion, as shown below.

Direct materials: 70 percent complete Direct labor: 75 percent complete Overhead: 80 percent complete The following cost information is for the Casting Department at Mason Incorporated for the month of September.

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 steps 2 and 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 the rounding the cost per equivalent unit in step 3.

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Materials Direct Labor Overhead Total $35,000 $20,000 $50,000 $105,000 85,000 40,000 95,000 220,000 Beginning WIP Inventory Incurred during the month Direct