1. 2.

Product Cost Flows Complete the following T-accounts: Materials Inventory 1,120 Manufactured Overhead Wages Payable 9,000 1,050 Finished Goods Inventory 1,500 0 175 0 870 O 0 0 18,120 1,200 18,000 4,500 250 0 Cost of Goods Sold Work in Process Inventory 3,500 O 0 9,000 0 500 Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at the beginning of the process in the Compounding Department. Conversion costs are added evenly throughout each process. Ferris uses the FIFO method of process costing. In the Compounding Department, beginning work in process was 18,000 pounds (70% processed), 166,500 pounds were started in process, 162,000 pounds transferred out, and ending work in process was 60% processed. Calculate equivalent units for the Compounding Department for March 2016. Conversion Costs Ferris Corporation Flow of Units and Equivalent Units Calculation, March 2016 Equivalent Units % in Direct % in March Materials March Complete/Transferred Beginning inventory 0 0 % 0 0 % Started & completed 0 0 % 0 0 % Ending inventory 0 0 % 0 0% Total 0 0 0 0 0