Chester Smith manufactures cheddar cheese. The manufacture of cheese requires one period of production and storage in huge vats and two periods of aging in a cellar. The company uses process costing and prepares departmental production reports in each of its two departments, production and aging. All units in beginning WIP are transferred out by the end of that period.

Costs in the beginning work in process totaled \(\$ 230,000\) for ingredients and \(\$ 406,000\) for conversion costs. Costs incurred during the period included \(\$ 258,000\) for ingredients and \(\$ 492,000\) for conversion costs. During the period, all the cheese in beginning WIP was completed and transferred to the first aging process. The ending WIP for the cheese will have the same percent completions as the beginning WIP.
\section*{Required}
A. Compute the cost per equivalent unit for ingredients (round to two decimal places).
B. Compute the cost per equivalent unit for conversion costs (round to two decimal places).
C. Compute the value of the cheese completed and transferred to aging (round to nearest whole dollar).
D. Compute the value of the cheese in ending work in process (round to nearest whole dollar).
E. What is the importance of having these unit costs? How would Chester use this information?

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% Complete at Beginning of Period Ingredients Conversion Units Beginning work-in-process for production 2,400 90% 60% Cheese started into production 2,600 0% 0%