Monroe Company processes a food seasoning powder through its Compounding and Packaging departments.

In the Compounding Department, direct materials are added at the beginning of the process, and direct labor and manufacturing overhead are incurred evenly throughout the process. Monroe uses the weighted average method. Costs in the Compounding Department can be summarized as follows:

At August 31, 2019, 3,000 units were in process, 30% complete with respect to conversion costs. 

Required 

Calculate the following for the Compounding Department:

a. Equivalent units for materials and conversion costs during August.

b. Costs per equivalent unit for materials and conversion costs.

c. Total cost of units transferred to the Packaging Department.

d. Inventory cost at August 31, 2019.

Transcribed Image Text:

Inventory, August 1, 2019 (2,000 units, 40% complete) Direct materials... Conversion costs Current period (31,000 units started) Direct materials. Direct labor. Manufacturing overhead. 69 980 4,100 33,010 62,560 75,789 $171,359