Arrow 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. Arrow uses the weighted average method. Costs in the Compounding Department can be summarized as follows:

At August 31, 2016, 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, 2016.

Transcribed Image Text:

Inventory, August 1, 2016 (2,000 units, 40% complete) Direct material.. Conversion costs Current period (31,000 units started) Direct material.. Direct labor.. Manufacturing overhead.. 980 4,100 33,050 62,560 75,650 $176,340